Kazakhstan launches construction of its first polyethylene plant

The initial construction work of a polyethylene production plant has been launched in Kazakhstan, in the territory of the special economic zone "National Industrial Petrochemical Technopark" in the Atyrau region, Report informs referring to the Kazakh state company KazMunayGas (KMG).

The project is being implemented by the Silleno company, whose shareholders are JSC NC KazMunayGas (40%), Sinopec Overseas Investment Holding (30%), PJSC Sibur Holding (30%).

The project involves the construction of a plant with a capacity of 1.25 million tons per year, the investment volume is estimated at $7.4 billion.

"Completion of construction is scheduled for 2029. The launch of the enterprise will allow replacing imported polyethylene with domestic production and ensure growth in the export of products with high added value," the report says.

It is expected that the implementation of this project will provide GDP growth by 1.2% and will create about 8,000 jobs at the construction stage and 800 jobs after the launch of production. The project is financed by shareholders and loans from international banks.

The planned products of the complex are represented by a wide range of brands (up to 22 grades of polyethylene), 40% of which are premium class. The raw material for the production of polyethylene is ethane, which will be separated at the KMG Gas Separation Complex from dry gas from the fields of the Tengizchevroil company.