Russia’s largest petrochemical corporation, SIBUR, has signed agreements on terms of cooperation with Kazakhstan’s oil and gas company, KazMunayGas, and the country’s joint-stock company, Samruk-Kazyna, for setting up a petrochemical project in the special economic zone National Industrial Petrochemical Technopark in Atyrau, Kazakhstan.
The contract, signed during the XIV KAZENERGY Eurasian Forum, will see to the construction of an integrated gas service that will be boasting a 1250 KTPA capacity of polyethylene plant and 500 KTPA capacity of polypropylene plant among other planned facilities. SIBUR will be holding control over the 40% share in both the ventures.
The joint ventures are envisioned to provide a competitive edge to the companies in the global market with an expanded petrochemical base and access to better refining as well as transportation facilities.
Polyethylene is a class of linearly structured addition polymers made from ethylene monomers. Its lightweight, chemical resistance, water holding ability and ductility make this material increasingly important in food and household commodities packaging, cables and insulations, automotive parts, electronics, and household appliances.
As per ChemAnalyst, the joint venture which is set to add polymer capacities in Kazakhstan will uplift their consumption in the country with higher supplies of polyethylene and polypropylene to the downstream market. The synergistic technological expertise, as well as supply chain network, will aid in boosting the company’s global ranking in the petrochemical sector.