SINOPEC completes entry into Kazakhstan's Polyethylene project - GovernmentChina Petrochemical Corporation (SINOPEC) has officially become a shareholder in the Polyethylene project, according to a report from the press service of the Kazakh government.Prime Minister of Kazakhstan Olzhas Bektenov met with the leaders of the world's largest petrochemical companies, including President Zhao Dong of China Petrochemical Corporation (SINOPEC) and SIBUR LLC CEO Mikhail Karisalov. Discussions centered on the collaborative development of an integrated gas-chemical complex for polyethylene production valued at $7.7 billion. With a capacity of 1.25 million tonnes per year, the project is expected to represent 1% of global capacity."During the meeting, a tripartite protocol was signed, officially marking SINOPEC's entry into the project as a participant. The ownership structure now includes KazMunayGas with 40%, SINOPEC with 30%, and SIBUR with 30%.," the statement reads.A gas separation complex will be built at the Tengiz field to supply raw materials (ethane) to the Polyethylene project. The GSC's capacity will reach 9.1 billion cubic meters of dry gas processing per year, with the goal of producing 1.6 million tonnes of ethane.Ethane will be transported via the main pipeline from Tengiz to the Karabatan site in the Atyrau region, where a polyethylene production plant will operate.The project aims to produce approximately 22 grades of polyethylene using licensed technologies from Chevron Phillips and Univation, with 40% accouting for premium class. Polyethylene is widely used in various industries and households, making it the most popular polymer globally.Construction of the plant is scheduled for completion by 2029, creating over 8,000 jobs during construction and around 850 jobs during operation.The government is backing the project, which will be located in a special economic zone with suitable infrastructure and tax benefits. Bektenov stressed the significance of optimizing local resources for the project's success."Our economy prioritizes high-value production, especially in manufacturing goods with rapidly growing added value within the export-oriented chain. For example, polyethylene represents a value added that is 20 times greater than its raw material, ethane, with an increase from $80-90 to $1600-1800 per tonne. The Polyethylene project is expected to provide a signficant boost to both the manufacturing sector and the country's overall economy,” Bektenov said as quoted in the press release.Bektenov also stated that expert projections estimate the project's contribution to the country's GDP by 2030 to be around 1.2%.Kazakhstan's Samruk-Kazyna sovereign wealth fund, KMG, SIBUR Holding, and participants in the operating companies of the Polypropylene and Polyethylene petrochemical projects, respectively, in November 2022 signed the main documents to establish joint ventures based on Kazakhstan Petrochemical Industries and Silleno LLP, the Polyethylene project. The parties set the terms and conditions of the partnership in the joint ventures, specifically investment in the project and the procedure for selling the enterprise's finished product. The parties in May 2023 signed an agreement for Sinopec to join the project as a full-fledged partner. (ICE ALMATY)

Fonte notizia: INTERFAX