Kazakhstan expects a notable economic boost, with its GDP forecasted to rise by 1.2% by 2030, attributed to a polyethene project initiated by KazMunayGas (KMG), Russian SIBUR, and Chinese SINOPEC. Prime Minister Olzhas Bektenov emphasized the strategic importance of fostering high-value-added and export-oriented production for the nation's economic agenda.
The polyethene project aims to address the price gap between ethane and polyethene, promising significant value creation. The current price disparity, standing at 20 times from $80-90 to $1,600-1,800 per ton, underscores the economic potential of the venture.
China Petrochemical Corporation (SINOPEC) recently joined forces with KMG and SIBUR, formalizing their collaboration through a tripartite cooperation protocol. KMG holds a 40% stake in the project, while SINOPEC and SIBUR each have a 30% ownership share. The consortium plans to produce 22 varieties of polyethene, with 40% of the output designated as premium grade.
Construction of the plant is slated for completion by 2029, with initial projections suggesting a one-year earlier finish. The endeavour is expected to generate over 8,000 jobs during the construction phase and 850 permanent positions post-commissioning. The manufacturing facility will be situated within a special economic zone, equipped with essential infrastructure and a tailored tax framework. Additionally, the project encompasses the construction of a gas separation complex and a primary pipeline.
In a related development, Samruk-Kazyna Ondeu, a subsidiary of the Samruk Kazyna holding, divested a 40% stake in Kazakhstan Petrochemical Industries (KPI), a joint polypropylene venture, to SIBUR. This transaction reflects ongoing efforts to broaden investments in the country's petrochemical sector.
The collaboration between KazMunayGas, SIBUR, and SINOPEC signifies a concerted effort to harness Kazakhstan's economic potential, fostering sustainable growth and diversification.
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