KLPE and Tengizchevroil (hereinafter – TCO) have signed an agreement on the basic conditions of interaction in the design of the gas separation unit, which will be located on the territory of the Tengiz field.
JSC SWF Samruk-Kazyna held a meeting with Portfolio Companies in Atyrau, during which a project for the construction of the plant for the polyethylene production with a capacity of 1.25 million tons per year was discussed. The project is being implemented by KLPE LLP as part of the creation of the gas chemical complex on the territory of the National Industrial Petrochemical Technopark special economic zone (hereinafter – NIPT SEZ) in Atyrau region.
The participants of KLPE LLP are United Chemical Company LLP (99.9%) and Polymer Production LLP (0.1%). UCC itself is the subsidiary of Samruk-Kazyna JSC. In June last year, KLPE was transferred to the management of JSC National Company KazMunayGas (hereinafter – KMG).
Previously, the partners (investors) on the implementation of the project for the construction of the polyethylene production plant were UCC and the Austrian Borealis. However, the latter in May this year announced about its decision to withdraw from the project. The decision was based “on the comprehensive assessment of all aspects of the proposed project and is affected by the COVID-19 pandemic, as well as increased uncertainty of future market assumptions,” representatives of Borealis said at the time.
The Fund informed that, despite the refusal of the Austrian company (it should supply two polyethylene production units), to develop the petrochemical industry, KLPE “continues to work on the implementation of this project” and “confirmed the operability of the technological scheme proposed by KMG.”
Also, for the uninterrupted supply of raw materials to the future plant, a gas separation unit (hereinafter – GSU) with a capacity of 9.7 billion cubic meters of gas is currently being designed, which is necessary for the extraction of ethane from dry gas.
“It is planned that the GSU will be located on the territory of the Tengiz field, which is the optimal solution to ensure the reliability of raw materials supplies to the polyethylene production plant,” the reports of JSC SWF Samruk-Kazyna say.
To date, the development of the feasibility study for the GSU has been completed in cooperation with TCO. The agreement between KLPE and TCO on the basic conditions of interaction in the design of the installation provides for the transition to the next stage – preparation of the design and estimate documents (hereinafter – DED). The purpose of the agreement is to consolidate the interaction between two enterprises in the design of the gas separation unit. The DED development will be carried out by KLPE with the support of TCO, the Fund explained.
Earlier it was said that the capacity of the GSU will be 7.7 billion cubic meters of dry gas per year, and its cost is USD1 billion. In general, the project for the construction of the polyethylene production plant, which is planned to be implemented in 2021-2024, is estimated at USD6.9 billion.
Let us recall that as part of the first stage of the creation of the gas chemical complex, the polypropylene production plant with a capacity of 500 thousand tons per year worth USD2.6 billion is being built on the territory of the NIPT. According to Samruk-Kazyna JSC, at the moment, the construction of the plant has been completed by 74%. Commissioning is scheduled for 2021. KPI LLP is the operator of the project. The participants of the partnership are UCC (99%) and Firm Almex Plus (1%).
JSC “Sovereign Wealth Fund “Samruk-Kazyna” was founded in 2008. The Government of the Republic of Kazakhstan is the Sole Shareholder of the Fund. The Fund’s assets are estimated at USD67 billion. The group of Samruk-Kazyna JSC companies includes enterprises of the oil and gas and transport and logistics sectors, chemical and nuclear industries, mining and metallurgical complex, energy. https://kursiv.kz/news/otraslevye-temy/2020-08/na-tengize-postroyat-stanciyu-po-separacii-sukhogo-ga...
TAGS: GAS,CONSTRUCTION, TENGIZ