KLPE and TCO Signed Basic Terms of Gas Separation Plant Design
On 18 August 2020, Samruk-Kazyna (Fund) CEO Akhmetzhan Yessimov, and KazMunayGas CEO Alik Aidarbayev, visited Atyrau plants.
During the visit, they held meeting with the Fund’s portfolio companies, where they discussed construction of Atyrau Polyethylene Plant with the 1.25 mln tonne annual capacity. To recap, earlier Borealis used to be a project partner. However, Borealis decided to quit the project because of the global crisis caused by COVID-19 and low oil price, which lead to investment slump. Yet, the Fund, represented by KLPE (a company controlled by KMG), went ahead with the project in furtherance of the petrochemical industry development. A good progress in this task was made under KMG's assistance. Process flow KMG proposed, in this context, proved to be serviceable.
Now a 9.7 bln m3 Gas Separation Plant (GSP), which will produce ethane from dry gas to be supplied to the future Polyethylene Plant, is under design. The Plant is the only of its kind in Kazakhstan. The GSP is planned on Tengiz Project territory, which is the best logistic endurance solution.
To date, the GSP feasibility study (Pre-FEED) is prepared in cooperation with Tengizchevroil (TCO).
Signing of GSP Design Basic Terms Agreement between KLPE and TCO means the next logical step – preparation of front-end engineering design (FEED). The agreement serves to provide statutory basis for partnership relations between KLPE and TCO in terms of GSP design activities. FEED package for this large-scale project will be prepared by Kazakh company KLPE with TCO's assistance.
United Chemical Company and Polymer Production are shareholders of KLPE. From 26 June 2019, KLPE is beneficially owned by KMG. In 2019, the Project Feasibility Study with positive economic indicators was completed. The project goal is to design and manufacture large tonnage polyethylene with the 1.25 mln tonne annual capacity, which will be sold domestically and internationally.