Turkmengas Kiyanla Petrochemical Plant, Turkmenbashi, Turkmenistan


Turkmenistan's national oil and gas company Turkmengas is implementing a $3bn petrochemical plant project, which is expected to come online in 2018. The groundbreaking ceremony for the project was held in April 2014.

The engineering, procurement, construction and commissioning (EPCC) contractor for the project is the consortium of Hyundai Engineering, Hyundai Engineering & Construction (HEC), LG International (LGI) and Toyo Engineering Corporation. The front end engineering and design (FEED) studies for the project were also performed by the consortium.

The petrochemical plant will primarily produce high-density polyethylene (HDPE) and polypropylene (PP) by sourcing natural gas produced from the Caspian coast in Turkmenbashi (Turkmenbasy) district of the Balkan Province.

"LGI has signed a memorandum of understanding (MoU) with Turkmengas in June 2014 to sell the products from the complex for a period of ten years."

The polymer products from the project will be targeted at customers in Asia, the EU and Turkey. LGI has signed a memorandum of understanding (MoU) with Turkmengas in June 2014 to sell the products from the complex for a period of ten years. The contract is valued at approximately $7bn.

Turkmengas' petrochemical complex details

The petrochemical complex will feature a gas separation plant (GSP) of five billion cubic metres a year, an olefin conversion unit (ethane cracker unit, ECU), a 386,000t/y HDPE unit and an 81,000t/y PP production unit. The by-products from the project will be sales gas, propylene and pygas.

The complex will comprise facilities, including a distributed control system (DCS), an emergency shutdown (ESD) system, a supervisory control and data acquisition (SCADA) system integrating a remote terminal unit (RTU), fire and gas detection system, control rooms, an electrical substation and a maintenance building and warehouse.

Utility and offsite facilities for the project will include a desalination plant, a water treatment plant, a chemical storage system, a blowdown and flare system, a steam generation unit, an air and nitrogen system, a fuel oil and fuel gas system, an electric power generation system and an intermediate product storage tank farm.

Processing technologies at the Kiyanla petrochemical plant

Ineos Technologies has agreed to licence its proprietary Innovene S technology for the HDPE plant, as well as provide a 50,000t/y black compounding line.

Al-Karaana Petrochemical Complex is a proposed olefins and derivatives plant, which will be located at Ras Laffan Industrial City in Qatar.

The gas separation unit will implement Toyo's proprietary COREFLUX-C2 technology to recover ethane (95% recovery rate) and liquefied petroleum gas (LPG) from liquefied natural gas (LNG) while BASF's proprietary OASE technology will be implemented for acid gas removal.

The ethylene and polypropylene plants will implement technologies licensed by ABB Lummus Global and W. R. Grace & Co respectively.

Financing for Turkmenistan's petrochemical plant

Korea Eximbank, Korea Trade Insurance Corporation and seven Korean commercial banks, namely Kookmin bank, Industrial bank of Korea, Nonghyup bank, Shinhan bank, Woori bank, Korea Exchange bank, Hana bank and a number of foreign commercial banks are providing $707m for the project. It includes a direct loan of $492m and a guarantee of $215m.

The Japan Bank for International Cooperation (JBIC) acting through the State Bank for Foreign Economic Affairs of Turkmenistan (TVEB) and co-financers Tokyo Branch of Deutsche Bank, Sumitomo Mitsui Banking Corporation, Mizuho Bank, and The Bank of Tokyo-Mitsubishi UFJ are providing an export loan of $730m for the project. JBIC's contribution to the loan is $438m.

The insurance for the co-financed portion is being provided by Nippon Export and Investment Insurance (NEXI).

NRI Energy Technology