Gas and chemical giant

September 27, 2013

Gas and chemical giantConstruction of Kazakhstan’s first integrated gas -chemical complex in Atyrau is to be completed in late 2015.

Nursultan Nazarbayev tasked the Government to create our own petrochemical industry. This task will have been implemented after construction of the first integrated chemical complex in Atyrau region.

- The complexes of such level have never been constructed in Kazakhstan before. Initially, we planned to build it in Atyrau, but at the environmentalists’ recommendations the construction site has been chosen in the desert. So at present we are resolving the issue on supplying water and electricity there. In other words, we are creating a city-forming enterprise, — said yesterday in Astana, director of petrochemicals and technical regulation department of the Ministry of Oil and Gas Sholpan Haydargalieva, explaining the reason for a delay in the project’s implementation.

- About 7 billion cubic meters of gas will be transferred to the LLP «United Chemical Company», which is responsible for this project’s implementation. About 2 billion cubic meters of this gas will be used for production of ethane, propane and butane fractions. The rest will go back to the TCO for re-injection to enhance oil recovery in Tengiz field, — explained Sh. Haydargalieva.

At the first phase after the production’s launch, the Tengiz gas will be used, and then, upon completion of the second phase of the project, the Karachaganak gas condensate will be supplied, and later — the associated gas from Kashagan.

- The construction site is already prepared and there are another several construction sites. But the main work will begin after the resolving of the financing issue, — she went on.

Chairman of the board of the LLP «United Chemical Company» Askhat Omarov said the total investment in the project will be over KZT 34 billion.

- The construction will be funded at the expense of the Chinese loan in the frames of the loan agreement, signed between the Fund «Samruk- Kazyna» and the Export-Import Bank of China. The project will be financed through the Development Bank of Kazakhstan. We hope that in November all banking procedures will be completed and funding of the project will start, — said A. Omarov.

Construction of the integrated complex should be finalized by the end of 2015. The first phase involves commissioning of a polypropylene production line the capacity of about 500 thousand tons per year.

- According to our estimates, more than 80 % of the future products will be exported. The rest of them will be used for new innovative productions, — added Sh. Haydargalieva.

Director of LLP «Polymer Production» Gabit Zakaria said some other objects will be constructed along with the plant, in particular, a polymer production plant in the economic zone «National industrial petrochemical industrial park».

- More than 60% of our products will be the biaxially-oriented polypropylene film (BOPF). This type of film has never been produced in our country, but it is widely used here. Until now, this film was imported from Turkey, China , Russia , Iran, — said Mr. Zakaria.

The polypropylene film is used for packaging of food, clothing and tobacco products. Also in the future, the company is planning to produce biodegradable plastic packaging.

- We intend to reduce imports and provide Kazakhstan with its own products. And then in the near future we are going to enter the Central Asian market. We have already concluded a number of agreements on the sale of the finished products, — said Zakaria.

The total cost of the project is $ 85 million, 50 % of which is from «Samruk — Kazyna», the others – from the borrowed finds of the JSC «Sberbank».