Sinopec to hold 30% stake in polyethylene plant - KazMunayGas

ASTANA. Oct 17 (Interfax) - KazMunayGas CEO Magzum Mirzagaliyev has announced that the Chinese company Sinopec would acquire a 30% stake in the polyethylene plant project.

"In May, we signed a deal to build a polyethylene plant. After several months of negotiations with Sinopec, they will now join us in this venture with a 30% share. KazMunayGas will own 40%, and SIBUR will own the remaining 30%," Mirzagaliyev was quoted as saying by the presidential press service after the meeting between the Kazakh President Kassym-Jomart Tokayev and the Chairman of the Board of Directors of Sinopec, Ma Yongshen.

As reported, Samruk-Kazyna State Fund, KazMunayGas, SIBUR petrochemical holding, and the participants of the operating companies of the oil and gas chemical projects, Polypropylene and Polyethylene, in November 2022 signed the main documents on establishing joint ventures based at Kazakhstan Petrochemical Industries and Silleno LLP, a Polyethylene project. The parties set the terms and conditions of the JV partnership, particularly investment in the project for the construction of a polyethylene production plant with capacity of 1.25 million tonnes per year, as well as the procedure for selling the enterprise's finished products.

At the time, SIBUR was reportedly to hold a 40% share in each joint venture.

Sinopec and SIBUR are both set to own 30% of the project.

KazMunayGas Deputy CEO Diana Arysova in August said that the polyethylene plant project was in its preliminary design and feasibility study phase. The final investment decision is expected in mid-2024.

The project is estimated at $7.7 billion, with annual production capacity of 1.250 million tonnes, scheduled for completion in 2028.