Sinopec could acquire 30% stake in polyethylene plant project in Kazakhstan

ASTANA. July 19 (Interfax) - China's Sinopec plans to become part of a polyethylene plant project in Kazakhstan by acquiring a 30% stake, JSC KazMunayGas (KMG) Deputy Chairman Dastan Abdulgafarov said in a statement.

According to Abdulgafarov, the Silleno LLP polyethylene plant's stakes are expected to be distributed as follows: KazMunayGas - 29.9%; KMG Petrochem, a 100% subsidiary of KMG, - 10.1%; Russia's SIBUR petrochemical holding - 30%; and Sinopec - 30%; thus KazMunayGas's total stake in the project should be 40%.

The project is estimated at $7.7 billion, with annual production capacity of 1.25 million tonnes.

The plant is expected to be completed in 2028.

Abdulgafarov also said that KMG and China Petroleum & Chemical Corporation (Sinopec) on May 18 this year signed an agreement on principles regarding jointly implementing the polyethylene project. The document envisages Sinopec joining the project as a full partner on a par with SIBUR.

Samruk-Kazyna Kazakh National Wealth Fund, KazMunayGas, SIBUR, and the stakeholders of operating companies in November 2022 signed main, underlying document to create joint ventures based on Kazakhstan Petrochemical Industries Inc. LLP and Silleno LLP. They agreed on the terms and conditions for the partnership in the joint ventures, including investment in the construction of a polyethylene plant with annual production capacity of 1.25 million tonnes, as well as sales of polypropylene to be produced at the plant. SIBUR's stake in each joint venture is reportedly 40%.