Tatneft and Samruk-Kazyna start construction of butadiene plant in Kazakhstan - Tokayev
MOSCOW. Nov 9 (Interfax) - Butadiene LLP, a joint venture of Russia's Tatneft and Kazakhstan's Sovereign Wealth Fund Samruk-Kazyna, has started the construction of petrochemical plant, Kazakh President Kassym-Jomart Tokayev said, addressing the 19th Forum of Interregional Cooperation between Kazakhstan and Russia.
The Forum was held on Thursday in Kostanai, north Kazakhstan.
"Construction of the Kazakh-Russian butadiene plant, with a design capacity of up to 340,000 tonnes year, has been started together with Tatneft," the president said.
It was reported earlier that the butadiene plant will be built at the National Industrial, Petrochemical and Technical Park in the Atyrau region, west Kazakhstan.
The joint venture for the production of butadiene and its derivatives was created by Tatneft (75%) and Kazakhstan's National Company KazMunayGas (25%) in November 2021. In June 2023, KazMunayGas transferred its holding in the joint venture to Sovereign Wealth Fund Samruk-Kazyna JSC.
Initially, the production capacity of the enterprise was expected to be around 180,000 tonnes of butadiene and butadiene rubber a year, with the feedstock for the production process to be supplied from the Tengiz and Korolev oil fields in the Atyrau region of Kazakhstan.
It was reported that the licensor of the petrochemical plant would be American Lummus Technology, including the rights for the technology and the basic engineering for the four production units to be located at the plant, which would produce 85,000 tonnes of isobutylene, 120,000 tonnes of butadiene and 40,000 tonnes of methyl tertiary-butyl ether.
Kazakh Deputy Energy Minister Askhat Khasenov told Interfax earlier that the first phase of the project will be taken to commercial operation by the end of 2025 and the second by the end of 2026. Investment in the project is estimated at $1 billion.
The both phases will produce about 100,000 tonnes of rubber a year. The rubber will be supplied to the tire plant of KamaTyresKz LLP, which is a joint venture between Tatneft PJSC and the Kazakhstan-based company Allur, according to Khasenov. The tire plant is located in the town of Saran in the Karaganda region, central Kazakhstan.