Kazakhstan Begins Construction on Major Polyethylene Plant in Atyrau
- The polyethylene plant in Atyrau has a $7 billion investment and will be completed by 2028.
- Production is set to begin in 2029 with a capacity of 1.25 million tons annually.
- Ethane feedstock will be sourced from Tengizchevroil gas fields and delivered via a new pipeline.
- Technologies from Lummus, Chevron Phillips, Univation, and Axens will be used in the plant.
Project Overview
The Silleno polyethylene plant is under construction in the Special Economic Zone "National Industrial Oil and Gas Chemical Technopark" in Atyrau, Kazakhstan. The project, with a $7 billion investment, aims to produce 1.25 million tons of polyethylene annually. Completion is expected by 2028, with production starting in 2029.
Economic Impact
The plant will significantly impact Kazakhstan's economy by creating approximately 8,000 jobs during construction and 800 jobs once operational. It will also reduce the country's reliance on polyethylene imports, substituting about 90% of the imported range. The local polyethylene market, estimated at 300,000 tons in 2024, is projected to grow to 400,000 tons by 2035, with Silleno meeting most of the demand.
Feedstock and Technology
Ethane feedstock for the plant will be extracted from gas fields operated by Tengizchevroil and delivered via a main pipeline constructed by KMG. The facility will feature a steam cracker for ethylene production using Lummus Technology, ethylene polymerization units based on Chevron Phillips Chemical and Univation Technologies, and a butene unit utilizing Axens technology. These solutions ensure high reliability and minimal environmental impact.
Construction Details
The first piles have been driven, and preparatory work has begun with the steam cracker. The EPC contractor for this phase is Tecnicas Reunidas, in consortium with Sinopec Engineering Incorporation. The project is a collaboration between key stakeholders, including regional and national government officials and industry leaders.