Kazakhstan Petrochemical Complex, Kazakhstan

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Key Data

Plant Owner

Kazakhstan Petrochemical Industries (KPI)

Investors

LyondellBasell, Kazakhstan's Sat & Company, Kazakhstan National Oil and Gas Company (KazMunaygaz)

Location

Atyrau Oblast, Karabatan region, Kazakhstan

Investment Cost

$5.2bn

Start Up

Three to five years' time

Products

Ethylene one million tpa, lldPE 400,000tpa, ldPE 400,000tpa

lldPE and ldPE Technology Providers

LyondellBasell

Full specifications

During May 2007 the government of Kazakhstan's Energy and Natural Resources Ministry approved a feasibility study for the development of a gas-based petrochemical complex in the country's Atyrau Oblast, Karabatan region. "The complex will be based around a cracker producing one million tpa of ethylene." The complex is being developed by Kazakhstan Petrochemical Industries Inc (KPI) and will be based around a cracker producing one million tpa of ethylene. Other products include polyethylene and polypropylene. A propane dehydrogenation unit is also planned. Investment costs are put at $5.2bn. The facilities are expected to be built over the next three to five years. The production plants are expected to initially obtain gas feedstock from the Tengiz oil field. Project backers Kazakhstan Petrochemical Industries has a number of shareholders including LyondellBasell, which holds a "minority" stake. Kazakhstan's Sat & Company, a private company, and Kazakhstan National Oil and Gas Company (KazMunaygaz) are also shareholders. Polyethylene/polypropylene technology During August 2008, LyondellBasell announced that the polyethylene and polypropylene facilities being planned by Kazakhstan Petrochemical Industries would use the company's process technology. LyondellBasell said that the complex would include a 400,000tpa linear low density polyethylene (lldPE) and high-density polyethylene unit, based on its Spherilene technology. In addition, a 400,000tpa low-density polyethylene (ldPE) unit will use LyondellBasell's Lupotech T process technology, while a 500,000tpa polypropylene (PP) plant will use the company's Spherizone process. Financing During 2008, the Development Bank of Kazakhstan concluded two agreements with the EximBank of China for credit facilities totalling $400m. The financing terms enable the Bank of Kazakhstan to finance projects over the next 20 years. "The project is part of the Kazakhstan government's initiative to develop to country's petrochemical industry." The projects include those in the chemical and petrochemical sectors as well as energy, transport and communication and metallurgy. Background The project is part of the Kazakhstan government's initiative to develop to country's petrochemical industry, with the establishment of production facilities for integrated processing and refining of hydrocarbon raw materials. The planned complex will be the country's first integrated gas chemicals complex, producing high-quality polypropylene, polyethylene and other petroleum-based products. Kazakhstan has about eight billion tonnes of proven recoverable oil reserves. Industry analysts believe that planned expansion of oil production, together with the development of new fields, will enable the country to produce as much as three million barrels per day by 2015, taking it into the world's top ten oil producers.	Expand Image The General Director of SAT & Company, Nurlan Abduov presents to the Head of State the plans for the development of KPI's integrated gas-based petrochemical complex.
	Expand Image Kazakhstan has enjoyed a steady growth of its GDP for the last five years, with year-on-year increases of over 9%. The government plans to double its GDP in 2008 compared with 2000.
	Expand Image The Republic of Kazakhstan is a large landlocked country in Northern and Central Eurasia. Its territory is over 2.7 million square kilometres and is bigger than that of all of Western Europe.

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