First phase of joint Tatneft petrochemical enterprise with Samruk-Kazyna fund in Kazakhstan can start by 2026, second by 2027

KAZAN. Aug 31 (Interfax) - The estimated launch date for the first stage of the joint petrochemical venture between Tatneft and the Samruk-Kazyna fund, called Butadiene LLP is the end of 2025, Deputy Energy Minister of Kazakhstan Askhat Khasenov told Interfax.

"We are implementing two stages today jointly (...). We plan to complete the first stage by the end of 2025, and the second stage by the end of 2026," he said.

Khasenov confirmed the $1 billion investment target for the project: "Of course, the design estimates and working documentation will show everything, but today these are real figures."

The total capacity of the two stages in terms of rubber production will be about 100,000 tonnes per year, the deputy minister said.

"It is a fact that we will supply 380,000 tonnes of butane to the input area for raw materials, and there is a configuration (we will be getting several types of products, so there is flexibility): divinyl-styrene synthetic rubber (DSSR), we can receive isobutylene, and therefore, we will have about 100,000 tonnes of rubber in output. Plus, we will also get the isobutylene," Khasenov said.

As reported, a joint venture for the production of butadiene and its derivatives was established by Tatneft, with 75%, and the state company KazMunayGas, with 25% in November 2021. In June 2023, KazMunayGas transferred its share to the Samruk-Kazyna National Wealth Fund.

Initially, it was assumed that the capacity of the enterprise would be upwards of 180,000 tonnes of butadiene and butadiene rubbers per year, and that crude oil would be supplied from the Tengiz and Korolev fields in Kazakhstan.

It was also reported that the licensor of the petrochemical plant would be American Lummus Technology. The license includes technology and basic engineering rights for four of the plant's process units. It was noted that as a result of the installation, 85,000 tonnes of isobutylene, 120,000 tonnes of butadiene and 40,000 tonnes of methyl tertiary butyl ether would be produced.