Within the framework of the visit of the Kazakh delegation headed by the Chairman of the Management Board of JSC NC KazMunayGas Magzum Mirzagaliyev to China, a meeting was held with the President of the Chinese petrochemical corporation Sinopec Yu Baocai. The meeting was also attended by the management of SIBUR.
The parties discussed the status of the implementation of the major Polyethylene project, including the completion of the procedures for Sinopec's legal entry into the project. It is important to note that 2024 plays a key role in the development of the project, as it is the year when the final investment decision (FID) on the project is expected to be made. As of today, the project is in the active design phase (EBD/FEED).
"It is with great satisfaction that I note the productive negotiations with our partners. We discussed technical aspects and resource planning for the implementation of the Polyethylene project. This year, we expect to make the final investment decision, which will be the starting point for the transition to the important stage - the commencement of construction," shared Magzum Mirzagaliyev.
The Polyethylene project is implemented within the framework of the National Project on Sustainable Economic Growth aimed at improving the welfare of Kazakhstanis and meets the long-term strategic objectives of KMG, which, among other things, include improving the efficiency of the value chain, diversification of business and expansion of the portfolio of manufactured products from hydrocarbon feedstock.
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The Polyethylene project provides for the construction of a polyethylene plant with a capacity of 1.25 million tons per year on the territory of a special economic zone in Karabatan in close proximity to the Tengiz field. The plant will contribute to maintaining social stability in the region and creating new jobs. In particular, about 8,000 jobs will be created during the construction phase, and about 850 permanent jobs will be created during the operation period. The contribution to the country's GDP is estimated at 1.2%.
To date, license agreements have been signed with Chevron Phillips Chemical and Univation Technologies, the global leaders in this area, for the use of MarTECH® ADL and UNIPOL™ PE Process technologies, which will enable the production of a wide range of products, including premium high-density polyethylene, which continues to be in high demand worldwide.