Spain's Tecnicas Reunidas could open engineering center in Kazakhstan

ALMATY. Dec 3 (Interfax) - The Spanish company Tecnicas Reunidas is considering opening an engineering center in Kazakhstan, national oil and gas company KazMunayGas (KMG) said.

The operator of the Polyethylene project, Silleno LLP, and Tecnicas Reunidas have signed a memorandum of cooperation within the framework of a strategic project for the production of polyethylene.

"Tecnicas Reunidas will evaluate the potential for creating a full-fledged engineering center in Kazakhstan, taking into account the incorporation of local competencies in the design of petrochemical plants and the further development of the company's presence in the Kazakh market," KMG said.

The agreement sets out additional aspects of cooperation aimed at increasing the Kazakh content of the project. Particular attention will also be paid to the priority hiring of local personnel for both contractors and subcontractors, KMG said.

KMG said in December 2023 that it had discussed the development of design documentation with Tecnicas Reunidas for a steam cracking unit at the future polyethylene plant.

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

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

KMG has a 40% stake in the project and Russia's SIBUR and China's Sinopec each have 30%.

Tecnicas Reunidas is an international construction and project management EPC company. It provides a full range of engineering services, including feasibility studies, design, procurement and turnkey construction of industrial plants in the oil and gas, petrochemical and other industries. Tecnicas Reunidas opened an office in Astana in 2020.

The company has undertaken to design a new ammonia-urea complex for KazAzot Prime LLP costing around $1 billion at the seaport of Aktau.