Tatneft and Samruk-Kazyna Collaborate to Construct Butadiene Production Plant

Tatneft and the Samruk-Kazyna Fund have embarked on a significant joint venture through Butadien LLP, initiating the construction of a petrochemical plant that integrates the licensed expertise of Lummus Technology from the United States. This strategic collaboration is poised to establish Butadien LLP as a key player in the production of a diverse array of products, encompassing styrene-butadiene-styrene and divinyl-styrene synthetic rubber. Going beyond these synthetic rubber varieties, the plant has ambitious plans to manufacture substantial quantities of critical chemical components, including 120 thousand tons of butadiene, 85 thousand tons of isobutane-isobutylene fraction, and 40 thousand tons of methyl-tert-butyl ether (MTBE). Facilitating this venture, Tengizchevroil has committed to supplying a significant 380 thousand tons of butane annually, securing the essential raw materials for the project.

The anticipated rubber production output is projected to reach an impressive scale of 100 thousand tons per year, meeting the demands of the KamaTyresKz tire plant. Formally established in 2021 to bring this ambitious project to fruition, the Butadien Joint Venture is gearing up for the inauguration of its initial phase, with the target set for 2025. This ambitious undertaking commands a substantial investment, with an estimated financial commitment reaching a noteworthy USD 1 billion. In an earlier announcement, Tatneft communicated its intention to allocate 91.2 billion rubles for the construction of a terephthalic acid (TPA) production facility at the TANECO refinery.

The Investment Council of Tatarstan, convened during a meeting on October 13, has granted its approval for Tatneft's expansive project. The envisioned plant extends beyond the mere production of TPA, incorporating plans for the manufacturing of bioethanol—an additive for motor fuel—and the ether-aldehyde fraction (EAF). This comprehensive project is strategically planned for implementation over the course of a decade. Tatneft, firmly established as one of Russia's top ten oil production entities, continues to exert considerable influence in the industry.

The collaborative effort between Tatneft and the Samruk-Kazyna Fund exemplifies a joint commitment to diversify and expand their contributions to the petrochemical landscape. By leveraging international licensing expertise and securing a robust supply chain for raw materials, the Butadien LLP venture underscores a dedication to innovation and sustainability in the field of chemical production. As the global demand for these chemical compounds continues to evolve, the success of this joint venture positions both companies as pivotal players in the burgeoning international petrochemical market.

This strategic alliance not only symbolizes a progressive step towards meeting evolving market demands but also underscores the commitment of Tatneft and the Samruk-Kazyna Fund to play a leading role in shaping the future of the petrochemical industry. The success of this venture has the potential not only to solidify their positions in the market but also to contribute significantly to the broader global chemical landscape, setting new benchmarks for sustainable and innovative practices in the petrochemical sector.