Sinopec to Partner with SIBUR on Polyethylene Project in Kazakhstan
- KazMunayGas and Sinopec signed an agreement on May 18 for a polyethylene project in Atyrau.
- The final investment decision is expected in 2024.
- The project includes a polyethylene plant with a capacity of 1.25 million tons per year.
- SIBUR holds a 40% share in each joint venture.
Agreement Signing
KazMunayGas (KMG) and China Petroleum & Chemical Corporation (Sinopec) signed an agreement on May 18 during the state visit of Kazakhstan's President Kassym-Jomart Tokayev to China. The agreement outlines the joint implementation of a polyethylene production project in the Atyrau region of Kazakhstan.
Project Details
The agreement allows Sinopec to enter the project as a full partner alongside SIBUR. The final investment decision (FID) by the project participants is expected in 2024. The project includes the construction of a polyethylene plant with a capacity of 1.25 million tons per year.
Joint Ventures
In November 2022, the state fund Samruk-Kazyna, KazMunayGas, SIBUR Holding, and other participants signed key documents to establish joint ventures based on Kazakhstan Petrochemical Industries Inc. (KPI Inc.) and Silleno LLP. These ventures are located in the special economic zone "National Industrial Petrochemical Technopark" in Atyrau.
Production Capacities
The joint ventures will focus on the construction of the polyethylene plant and the production of polypropylene with a capacity of 500 thousand tons per year. SIBUR holds a 40% share in each joint venture. The KPI Inc. polypropylene production plant, launched in early November 2022, has been gradually increasing production since then.