A polyethylene plant worth $7.7 billion will be built before 2029

The government has announced a deadline for commissioning a polyethylene production plant, which will provide one percent of all global capacity, Liter.kz reports.

Prime Minister of the Republic of Kazakhstan Olzhas Bektenov met with the heads of the world’s largest petrochemical companies – President of China Petrochemical Corporation (SINOPEC) Zhao Dong and Chairman of the Board of SIBUR LLC Mikhail Karisalov.

The key issue of the meeting was the joint construction of the first integrated gas-chemical complex for the production of polyethylene worth about $7.7 billion with a production volume of 1.25 million tons per year, which will account for one percent of all global capacity.

The participants signed a tripartite protocol, officially completing SINOPEC’s entry into the project. The structure of the plant’s owners is as follows: KazMunayGas – 40%, SINOPEC – 30%, SIBUR – 30%.

To supply the project with raw materials (ethane), a gas separation complex (GSK) will be built at the Tengiz field. GSK capacity is 9.1 billion cubic meters. m of dry gas processing per year, of which it is expected to release 1.6 million tons of ethane.

It is expected that the plant will produce about 22 grades of polyethylene using American licensed technologies, of which 40% will be premium class.

Polyethylene is used in the fields of medicine, prosthetics, defense, food industry, construction, space industry, etc. This polymer is used in the production of a wide range of products: from plastic wear-resistant pipes, building materials, medicines, syringes, prosthetics to body armor, clothing for astronauts and automobiles. details.

Target markets include Kazakhstan, CIS countries, China, Turkey and European countries. At the same time, for domestic consumption the selling price will be lower than the import price.

The head of state identified deep processing of hydrocarbons as one of the key directions for the development of the oil and gas sector. The priority for our economy is high value-added production – the production of products with a rapid increase in added value in the technological chain with an export orientation. The added value between the feedstock – ethane and the third stage product – polyethylene increases 20 times, from $80-90 to $1600-1800 per ton. The Polyethylene project will certainly give a serious impetus to the development of both the manufacturing industry and the country’s economy as a whole. According to experts, the contribution to the country’s GDP by 2030 from the implementation of the project is estimated at approximately 1.2%, noted Olzhas Bektenov.

Construction of the plant is planned to be completed by 2029. More than eight thousand jobs will be created during the construction period, and about 850 jobs will be created during the operation period.

The Prime Minister focused the attention of project participants on the need to maximize the use of local potential.

In addition to the plant, it is planned to build a gas separation complex and a main pipeline.

Let us recall that earlier the head of the board of directors of SINOPEC, at a meeting with the President of the Republic of Kazakhstan, announced plans to begin construction of the plant in the second half of 2024.