Sinopec to Invest in Kazakhstan Polyethylene Plant, Construction to Begin Soon

KazMunayGas announced that the main construction work of the polymerization unit for the Future Polyethylene Production Plant (a joint project of KazMunayGas, Sibur, and Sinopec) will begin in October 2025.

Askhat Khassenov, Chairman of the Management Board of the Kazakhstan National Oil Company, held talks in Beijing with Hou Qijun, Chairman of China Petrochemical Corporation, to discuss the implementation of the polyethylene project.

KazMunayGas stated that piling and foundation work at the pyrolysis unit construction site is still ongoing.

The company stated after the negotiation: "For the second key unit—the polymerization and off-site facilities—an EPC contract has been signed with a consortium composed of Italy's Maire Tecnimont and Sinopec Shanghai Engineering Company. The main construction work for the second unit is scheduled to begin in October 2025."

The polyethylene project will enter the final stage of basic engineering in the summer of 2024 and will begin construction in September 2024.

The share distribution of the project is as follows: KazMunayGas holds 40%, SIBUR holds 30%, and Sinopec holds 30%. The project is expected to have an investment of USD 7.7 billion, with financing sources including shareholder funds and international bank loans.

The project will construct a polyethylene production facility with an annual capacity of 1.25 million tons, along with a comprehensive gas separation facility and main pipeline. It was previously reported that the total cost of all projects is approximately $11 billion, directly invested by Kazakhstan's national oil company and its partners.