Kazakhstan and Sinopec Agree on Key Terms for Polyethylene Project
Kazakhstan and Sinopec Agree on Key Terms for Polyethylene Project

Kazakhstan and Sinopec Agree on Key Terms for Polyethylene Project

  • 29-May-2023 7:02 PM
  • Journalist: Xiang Hong

BEIJING: The national operator of Kazakhstan's oil and gas industry, KazMunayGaz, has recently signed a significant agreement with China Petroleum & Chemical Corporation, popularly known as Sinopec. The deal outlines the terms for jointly developing a Polyethylene project in the Atyrau Region. The signing ceremony took place on May 18 in Xi'an, China.

During Kazakh President Kassym-Jomart Tokayev's recent visit to China, an agreement was signed between the two nations. As per the agreement, Sinopec will participate and support the Polyethylene project as a cooperative partner. This project is anticipated to be the biggest natural gas and chemical project in the region, and the investment decision is scheduled to be made final by 2024. Once Sinopec officially becomes a part of the project, all parties involved will sign an equity acquisition agreement and other legally binding documents.

Sinopec and KazMunayGaz have taken their longstanding partnership to new heights with the signing of a new agreement. The collaboration will utilize Sinopec's extensive expertise in engineering, marketing, sales, production, and operation, along with KazMunayGaz's strong local market presence and abundant resources. This move is expected to propel both companies towards mutually beneficial growth, creating a win-win situation for all involved.

Sinopec, a company with diversified upstream, midstream, and downstream operations, is publicly traded on both domestic and international stock exchanges. Its parent company, China Petrochemical Corporation, is globally recognized as the largest refining company and the third largest chemical company, thanks to Sinopec's robust oil and petrochemical core businesses and comprehensive marketing network. Additionally, Sinopec's impressive position among the top 5 companies listed on Fortune's Global 500 List solidifies its formidable presence in the business world.

The company specializes in various areas such as oil and gas exploration and exploitation, petroleum processing, oil product sales, storage, pipelines, oil field services and more.

As part of a strategic plan, Rompetrol Group N.V underwent a name change to KMG International in 2014. The plan aimed to integrate all activities within NC KazMunayGas JSC- the Group's shareholder and Kazakhstan's national oil and gas operator. Moreover, the rebranding aimed to promote a single brand of companies for successful entry into foreign markets. KMG International operates in Romania, Moldova, Bulgaria, Georgia, and offers well services upstream under the Rompetrol brand. With more than 40 years of experience in the oil industry, KMG International has attained triumphs locally and globally.

The Rompetrol brand has a presence in European countries such as Romania, Moldova, Bulgaria, and Georgia, where KMG International operates over 1300 distribution points. The Midia Port refinery's strategic location enables swift transportation of crude oil to Petromidia and distribution of oil products to KMG International subsidiaries in Moldova, Georgia, Bulgaria, and other longstanding partners in the Black Sea region.

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