Construction of the first integrated gas chemical complex. Second phase (Construction of gas separation complex)

Main Project objective: Ethane recovery from Tengiz field Dry gas to supply feedstock to the Polyethylene Project.

Project participants: KMG PetroChem LLP (100% subsidiary organization of NC KMG JSC).

Location: Atyrau region, TCO territory.

Construction period: 2025-2029.

Dry gas processing capacity: 9.1 billion St. m3/year.

Production capacity: up to 1.6 million tons/year (standard) of Ethane; up to 360 kta of Propane.

Process Licensor: US-based UOP for Ethane recovery and Propane Treatment units.

Jobs to be created: ~1,600 during Construction and ~400 during Operation.

Plans for 2024:

  • Re-FEED completion;
  • finalization of the updates to the Design and Estimate Documents;
  • taking FID for the Project to move to the Implementation stage;

Construction of the complex is scheduled to commence in 2025.

Project on construction of Trunk Pipelines (Ethane, Propane) in a single corridor in Atyrau region (hereinafter – Trunk Pipelines Project)

Trunk Pipelines Project Owner: KMG PetroChem LLP (100% subsidiary of NC KazMunayGas JSC).

Trunk Pipelines Project Objectives:

  • ensuring reliable, safe and uninterrupted pipeline transportation of liquefied Ethane fraction through the trunk Ethane pipeline and liquefied Propane through the trunk Propane pipeline from the facilities of Tengizchevroil LLP and the projected Gas Separation Complex (GSC) at Tengiz to gas chemical plants for production of Polyethylene (Silleno LLP) and Polypropylene (KPI LLP) on the territory of Karabatan SEZ NIPT;
  • creation of a single process chain (GSC — Trunk Pipelines — Polyethylene projects) for separation/production of products, their pipeline transportation to the above-mentioned plants for production of end high value-added petrochemical products.

Key Parameters:

The Trunk Pipeline project provides for transportation of up to 1.6 million tons of liquefied Ethane fraction and up to 1.0 million tons of liquefied Propane annually. The length of each pipeline will be approximately 210 km.

Location: Trunk Pipelines will be laid through the territories of Zhylyoi and Makat districts of Atyrau oblast and the plots adjacent to SEZ NIPT land plots related to Atyrau city.

Trunk Pipelines Project Execution Period: 2023—2028.

Status:

The Feasibility Study documentation package has been completed for the Trunk Pipelines project and obtained a positive conclusion by Gosexpertiza RSE dated April 25, 2024.

As part of the feasibility study development, the required approvals and permits were obtained from local executive and government authorities, as well as relevant technical specifications for crossings and connections of trunk pipelines from the interested organizations, including Silleno LLP (Polyethylene Project) and KPI Inc. LLP (Polypropylene plant).

Trunk Pipelines Project Way Forward:

1. Transition to the next phase of the Trunk Pipelines Project implementation — Engineering and Construction;

2. Preparatory work on arranging of financing for Engineering and Construction works of Trunk Pipelines.

Project Owner: Silleno LLP (29.9% KazMunayGas; 10.1% KMG PetroChem LLP, 30% SIBUR PJSC, 30% SINOPEC).

Capacity: production of 1,250 kta of Polyethylene.

Estimated Cost: US$7.4 bln.

Location: Atyrau region, NIPT SEZ territory (Karabatan site)

Expected Execution Period: completion of construction and installation works — 2028, start-up — 2029.

Target markets: Kazakhstan, Europe, CIS, China, Türkiye and other markets

Feedstock: 1.6 mln. tons of Ethane annually recovered from 9.1 bcma of Dry Gas sourced from Tengizchevroil LLP fields.

Number of jobs created: about 8,000 during construction phase and about 800 during operation phase.

Status: engineering stage.

Way Forward

From June till August this year the Project participants are expected to take Final Investment Decision whereafter transition to construction stage is expected.

Project Owner: KMG PetroChem LLP (100% subsidiary of NC KazMunayGas JSC).

Preliminary Project cost: ~US$1.5 bln. (to be updated based on the outcomes of the Feasibility Study).

Location: Mugalzhar district, Aktobe region

Execution period: 2024—2029.

Feedstock: up to 1 bcma of raw gas is expected to be processed for urea production.

Current Status: Development of a Project implementation strategy

Construction of Purified Terephthalic Acid and Polyethylene Terephthalate Plant.

Project Main Objective: Polyethylene Terephthalate Production.

Project Participants: KMG PetroChem LLP (100% subsidiary of NC KazMunayGas LLP).

Project Location: Atyrau region, Atyrau.

Construction Period: 2025–2029

Feed capacity: Paraxylene - 400 kta

Product capacity: Polyethylene Terephthalate - 735 kta

Process Licensors: Terephthalic Acid – KOCH Technology solutions; Polyethylene Terephthalate — СHEMTEX & POLYMETRIX.

Jobs to be created: ~2,000 during construction and ~500 during operation

Plans for 2024:

  • Pre-FS completion;
  • Transition to FEED.

Plant construction is scheduled to commence in 2026.

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