Kazakhstan Begins Construction of Atyrau Polyethylene Plant
- The polyethylene plant has an annual production capacity of 1.25 MT and an investment of USD 7.4 billion.
- Construction is expected to be completed by 2029.
- The project is implemented by Silleno, owned by NC KazMunayGas JSC, Sinopec Overseas Investment Holding, and Sibur Holding PJSC.
- The primary feedstock is ethane extracted from the Tengizchevroil fields.
Project Overview
The early construction of a polyethylene plant with an annual production capacity of 1.25 million tons and an investment of approximately USD 7.4 billion has commenced at the National Industrial Petrochemical Technopark Special Economic Zone in Atyrau Region.
Key Figures and Timeline
Construction is expected to be completed by 2029. The project aims to substitute imported polyethylene with domestic products and enhance the export of high-value-added goods. It is anticipated to contribute to GDP growth by 1.2% and generate around 8,000 jobs during the construction phase and 800 jobs post-commissioning.
Economic Impact
The project is expected to have a multiplier effect on the national economy by fostering the growth of associated industries and new domestically manufactured end products. Polyethylene, the world’s most prevalent plastic, is used across various sectors, including construction, packaging, automotive, and medical equipment.
Project Implementation
The project is implemented by Silleno, owned by NC KazMunayGas JSC (40%), Sinopec Overseas Investment Holding (30%), and Sibur Holding PJSC (30%). Funding will come from shareholder equity and loans from international banks. The plant will produce up to 22 grades of polyethylene, with 40% classified as premium grade, thanks to agreements with industry leaders like Axens, Univation Technologies, and Chevron Phillips Chemical.
Feedstock and Production
The primary polyethylene feedstock is ethane extracted at the KMG Gas Separation Complex from the dry gas produced at the Tengizchevroil fields. Polyethylene serves as a fundamental component in manufacturing a diverse array of products extensively utilized in daily life and industrial applications.