A joint venture between Chinese group Sinopec and Spanish company Técnicas Reunidas has been awarded a contract to develop a steam cracker in Kazakhstan, under a consortium led by KazMunayGas, the country’s state-owned oil and gas company. Sinopec will provide financial support for the project’s execution.
The contract comes as part of the strategic agreement signed between Sinopec and Técnicas Reunidas in September. This is the second major project resulting from the partnership, following the award of two large gas fractionation facilities in Riyas, Saudi Arabia, earlier this year.
The total investment for the project is estimated at around 2.3 billion euros, with each partner in the joint venture contributing 50%. The development is expected to be completed by the end of 2028.
US-based Lummus Technologies has been selected by Sinopec and Técnicas Reunidas as the technology licensor for the steam cracker. This unit, essential to any petrochemical complex, will be installed in a facility being developed by the KazMunayGas-led consortium in the Atyrau province, located on the Caspian Sea coast in western Kazakhstan.
The steam cracker will process gas from Kazakhstan’s fields, contributing to the production of approximately 1,300 kilotonnes per year (kta) of ethylene, a key component in the production of petrochemicals.