SIBUR and Kazakhstan sovereign wealth fund Samruk-Kazyna and state oil and gas company KazMunayGas have signed a framework agreement that could allow the company to take a role in petrochemicals projects in Kazakhstan.
The potential cooperation will allow SIBUR to produce Polypropylene (PP) and Polyethylene (PE) in National Industrial Petrochemical Technopark in Atyrau, the Republic of Kazakhstan adding nearly 2 million tonnes per year of capacity.
SIBUR is exploring to consider a role in an ongoing project involving the construction of a gas chemical complex to produce 500,000 tonnes per year of polypropylene (PP).
The company may also join in another pending project to build a 1.25 million tonnes per year polyethylene (PE) facility.
Raw materials for the projects would be sourced by the partners in the proposed joint venture.
Following SIBUR’s assessment of their economic feasibility, the partners are expected to make a decision on joint participation in the projects by the end of 2021.
“Our partners have extensive experience in constructing and operating large facilities in the oil and gas production, transportation and processing and will in turn be able to support the projects with the necessary raw materials and infrastructure within the special economic zone,” said SIBUR CEO Dmitry Konov.
Alik Aidarbayev, Chairman, KazMunayGas said, “If SIBUR confirms its participation in the project, we will have a reliable partner essential for implementation of a project so significant for our country. I would like to emphasise that the project will enjoy our comprehensive support. We will do our best to make sure it succeeds.”