KazMunayGas, SIBUR and Sinopec to make investment decision for polyethylene project in mid-2024

ASTANA. Aug 23 (Interfax) - KazMunayGas, SIBUR and Sinopec are jointly conducting a feasibility study for a polyethylene production plant, with a final investment decision expected in mid-2024, KazMunayGas Deputy CEO Diana Arysova said.

"Now the company is considering a project for the construction of a polyethylene production plant. This project is at the FEED stage. It will be implemented jointly with partners - Russia's SIBUR and China's Sinopec, who are currently conducting FEED together with KMG. The final investment decision is planned for mid-2024," Arysova said during the Issuer's Day at KASE on Wednesday.

Kazakh National Wealth Fund Samruk-Kazyna, KazMunayGas, SIBUR and the stakeholders of operating companies in November 2022 signed heads of agreement to create joint ventures based on Kazakhstan Petrochemical Industries Inc. LLP and Silleno LLP.

Sinopec announced plans to become participant in the polyethylene plant project with a 30% stake.

Silleno LLP polyethylene plant shares are expected to be distributed as follows: KazMunayGas - 29.9%, KMG Petrochem, a wholly owned subsidiary of KMG - 10 .1%, SIBUR - 30% and Sinopec - 30%.

The estimated cost of the project is $7.7 billion, and annual production capacity is 1.25 million tonnes. The plant is expected to be completed in 2028.