Published: 30 November 2021

On 30 November 2021, NC KazMunaiGas JSC Chairman of the Board Alik Aidarbayev and PAO Tatneft General Director Nail Maganov signed an Agreement on the joint venture of Butadien LLP, on the basis of that the project on rubber production will be implemented.

The planned capacity of the enterprise is up to 180 thousand tons of butadiene and butadiene rubber per year. KMG and Tatneft share accounts for 25% and 75% respectively. The preliminary cost of the project is estimated at about $1 billion, and the parties are considering options for financing the project, including at the expense of borrowed funds. The launch of production is planned in 2026 on the territory of SEZ National Industrial Petrochemical Technopark in Atyrau region. During the construction period, about 2000 jobs will be created on the site of the new production and more than 700 - during the operation of the plant.

It is expected that the feedstock will be supplied from Tengiz and Korolev fields of Kazakhstan. The finished products are planned to be sent to the tire factory in Karaganda region, as well as for export to European countries, Russia, China, Turkey, etc.

"Our company in accordance with the Development Strategy seeks to expand the value chain of manufactured products and actively develops the petrochemical industry in the Republic of Kazakhstan. Creation of joint venture of KazMunaiGas and Tatneft is evidence of this. I am sure the project will help to establish a partnership between Kazakhstan and Tatarstan, as well as allow to diversify the economy of our country" - said Alik Aidarbayev.

"Tatneft" has big plans in petrochemistry, and we are glad to develop this direction together with Kazakhstan’s partners. Kazakhstan is a strategic partner for us. We already have experience of cooperation, now we are also building a tire factory in Karaganda region, this is the practical implementation of the Strategy of economic integration of the countries - members of the Eurasian Union. We once again saw that Kazakhstan has created the most comfortable conditions for the implementation of large-scale investment projects. I am sure that the new joint venture for the production of butadiene rubber will contribute to the strengthening of the economy of our countries and the well-being of our peoples" – underlined Nail Maganov.

On 5 April 2021 KazMunaiGas and Tatneft signed an agreement on the basic conditions of cooperation on Butadien project. On 28 April 2021, the companies signed a road map for the project and a framework agreement.

For reference

NC KazMunaiGas JSC

National Company KazMunaiGas JSC is the leading vertically integrated oil and gas company of Kazakhstan. KMG manages assets throughout the production cycle from hydrocarbon exploration and production to transportation, processing, and provision of specialized services. The company, founded in 2002, represents Kazakhstan’s interests in the oil and gas sector of the country.

PAO Tatneft

PAO Tatneft is one of the largest Russian oil companies, that includes dynamic development of oil and gas production, oil refining, petrochemical, tire complex, gas station network, electric power industry, development, and production of equipment for oil and gas industry and service structures unit.