SIBUR and KazMunayGas discuss start of designing Silleno JV to produce polyethylene
MOSCOW. Nov 25 (Interfax) - Magzum Mirzagaliyev, head of KazMunayGas, and Mikhail Karisalov, head of SIBUR, have discussed in Moscow matters on cooperating as part of projects to produce polypropylene and polyethylene, the Kazakh company said.
KazMunayGas management has informed the partners about the ongoing work related to the start of designing the Silleno joint venture plant for the production of polyethylene.
KazMunayGas notes that in early November, Kazakhstan's Samruk-Kazyna National Wealth Fund, KazMunayGas, SIBUR Holding and the participants of the operating companies signed the fundamental documents on creating JVs at KPI Inc. LLP and Silleno LPP. The parties set the terms and conditions of the partnership in the JV located in Atyrau at the National Industrial Petrochemical Techno-park special economic zone (SEZ). The parties specifically set the terms for investing in the construction project of the plant with capacity to produce 1.25 million tonnes of polyethylene per year, as well as the procedure to sell the enterprise's finished products with total capacity of 500,000 tonnes of polypropylene per year.
SIBUR has confirmed to Interfax that SIBUR, Samruk-Kazyna and KazMunayGas have created a JV based on an integrated gas-chemical complex to produce polypropylene with capacity of 500,000 tonnes per year, as well as a project to construct a complex to produce polyethylene with capacity of 1.25 million tonnes per year.
"SIBUR's stake in each JV is 40%. As part of the joint venture, SIBUR will share its accumulated expertise in launching projects and operating world-class polymer complexes, and will participate in training the operating personnel of the enterprises," the Russian company noted.
"The project to produce polyethylene is under special control of the leadership of Kazakhstan, given the expected effect on the country's economy and its importance to developing the petrochemical sector," KazMunayGas quoted Mirzagaliyev as saying.
The Kazakhstan Petrochemical Industries Inc. (KPI) LLP plant was launched in early November to produce polypropylene. The first consignment of finished products for export totaling 1,500 tonnes was shipped on November 18.
Agreements on the framework terms and conditions for cooperation between the parties were signed in October 2021.