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

The key issue is the joint construction of the first integrated gas chemical complex for Polyethylene production at a cost of about $7.7 billion and a capacity of 1.25 million tons per year, which will be 1% of the total global capacity.

A tripartite protocol was signed during the meeting, formalizing SINOPEC's entry into the project. The ownership structure of the plant is as follows: KazMunayGas — 40%, SINOPEC — 30%, SIBUR — 30%.

The Head of the Government emphasized the importance of the project due to its focus on the production of high value-added products.

It is planned to produce about 22 grades of Polyethylene using American licensed processes of Chevron Phillips and Univation, 40% of which will be premium grade. An extensive range of applications for both industrial and household purposes makes Polyethylene the most in-demand polymer in the world.

“The head of state has identified deep processing of hydrocarbons as one of the key areas of development of the oil and gas sector. The priority for our economy is high value-added production — production of products with a rapid increase in value added in the process chain and export-orientation. The added value between the initial feedstock — Ethane, and the third conversion product — Polyethylene, increases 20 times, from $80—90 to $1600—1800 per ton. The Polyethylene project will certainly give a significant boost to the development of both the manufacturing industry and the country's economy as a whole. According to experts' estimations, the contribution to the country's GDP by 2030 from the project implementation is estimated at approximately 1.2%", — said Mr. Olzhas Bektenov.

The construction of the plant is planned to be completed by 2029. During the construction period more than 8 thousand jobs will be created, and during the operation period — about 850 jobs.

It was noted that the project is implemented with the support of the Government. The plant will be built on the territory of a special economic zone with the provision of appropriate infrastructure and a special tax regime. In this regard, Prime Minister emphasized to the project participants the need to maximize the use of local potential.

“We, on the part of the state, provide comprehensive support in the implementation of important projects for the country's economy. At the same time, we expect you to increase the share of local content. For this purpose, it is necessary to determine the list of goods and equipment that will be mandatorily purchased from domestic manufacturers. Special attention should be paid to the training of Kazakhstani specialists and the transfer of competencies. It is important for us to maximize the involvement of local personnel, including those in management positions in the project. We expect a similar approach in the implementation of other joint projects", — the Prime Minister emphasized. Apart from the Polyethylene plant, construction of the Gas Separation Complex and Main Pipelines is expected.

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