Sinopec's stake in Kazakhstan's largest polyethylene project will be delivered next year

Surge News On October 17, it was learned from China Petroleum and Chemical Corporation (hereinafter referred to as Sinopec) that during the third Belt and Road Forum for International Cooperation, under the witness of President Tokayev of Kazakhstan, Ma Yongsheng, Chairman of Sinopec, and Mirzakariev, Chairman of Kazakhstan Oil Pipeline Committee, signed an agreement on the shareholding of Kazakhstan Polyethylene Project Company.

According to the agreement, Sinopec will obtain 30% equity from Kazakhstan National Petroleum Corporation and other partners to participate in Kazakhstan's largest polyethylene project. It is expected that the equity delivery will be completed in the first quarter of 2024. The project is currently in the stage of Extended Basic Design (EBD), and the shareholders are expected to complete the final investment decision of the project in 2024.

Ma Yongsheng, Chairman of Sinopec, said that Sinopec and Kazakhstan National Petroleum Corporation had a foundation of cooperation for many years, and the signing of this agreement was a milestone, which meant that the cooperation between the two sides had entered a new height. The advantages of Sinopec in the polyethylene industry chain, combined with the strong local capacity and resource advantages of Kazakhstan National Petroleum Corporation, can promote mutual cooperation and seek win-win development.

Mirzakariyev, chairman of Kazakhstan National Petroleum Corporation, said that he believed that the participation of Sinopec as a strategic partner would be the key to the success of the project. Sinopec's valuable experience in engineering, construction and operation in the petrochemical field will help to establish a modern and reliable polyethylene plant, and will also help the project company sell some of its products to the Chinese market in the future.

The product design capacity of the above polyethylene project is 1.25 million tons/year. The plant is located in Karabadan, Atyrau, Kazakhstan, near the Tengiz oil field. In the future, the project will also produce diversified polyethylene products to meet the growing market demand around the world.

In addition, during the summit, Sinopec and Kazakhstan National Petroleum Corporation also signed the Agreement on Joint Preliminary Feasibility Study and Development of PTA/PET Project. The two sides intend to study the possibility of investing in the construction of PTA (terephthalic acid) and PET (polyethylene terephthalate) devices in Kazakhstan, and decide to further implement the project after completing the relevant preliminary feasibility study.

key word: petrifaction polyethylene Kazakhstan Completion of equity Equity delivery