Kazakhstan to build petrochemicals plant without LyondellBasell
ALMATY. March 25 (Interfax) - Kazakhstan has not yet found partners for the development of the integrated petrochemical complex in the Atyrau region and will commence the project on its own.
"LyondellBasell was due to make the decision [on project participation] in January, however it didn't. But we have to move on. So we will start the development ourselves," Kazakh Deputy Oil and Gas Minister Aset Magauov told reporters.
Magauov said the funding issue had already been solved and that Kazakhstan Petrochemical Industries, the project operator, and Sinopec Engineering had recently signed an agreement for the cooperation in the first polypropylene production phase.
Kazakhstan Petrochemical Industries is owned by Sat & Company LLP and KazMunaiGas Exploration Production on a parity basis.
The TengizChevroil joint venture signed a contract in March last year to supply 6-7 billion cubic meters of gas to this complex per year.
The initial cost of the project was $5.2 billion which later increased as the raw material prices grew.
The design capacity of the complex is 400,000 tonnes of low and high density polyethylene, 400,000 tonnes of low density linear polyethylene and 400,000 tonnes of polypropylene a year.