China's Sinopec officially joins Polyethylene project in Kazakhstan

ASTANA. April 4 (Interfax) - China's Sinopec has officially become a co-founder of Silleno LLP, which is constructing a polyethylene plant in Kazakhstan, KazMunayGas (KMG) told Interfax.

"Yes, we confirm," KMG's press service told Interfax in response to a request on the official entry of Sinopec into the Polyethylene project.

As explained, KMG has a 40% in the project, SIBUR petrochemical holding has a 30% stake, and Sinopec has a 30% stake.

KMG said on the Kazakhstan Stock Exchange (KASE) that it has ceased to own 20% in Silleno LLP as of March 29.

KMG until recently held a 49.9% stake in Silleno, and KMG Petrochem LLP, a subsidiary, held a 10.1% stake, while SIBUR previously held a 40% stake.

The Polyethylene project involves the construction of a polyethylene production plant with capacity of 1.25 million tonnes per year in the Atyrau Region in western Kazakhstan.

Kazakhstan's Samruk-Kazyna sovereign wealth fund, KMG, SIBUR Holding, and participants in the operating companies of the Polypropylene and Polyethylene petrochemical projects, respectively, in November 2022 signed the main documents to establish joint ventures based on Kazakhstan Petrochemical Industries and Silleno LLP, the Polyethylene project. The parties set the terms and conditions of the partnership in the joint ventures, specifically investment in the project and the procedure for selling the enterprise's finished product.

The parties in May 2023 signed an agreement for Sinopec to join the project as a full-fledged partner.

The estimated cost of the project is $7.7 billion, and the plant is expected to be completed in 2028.