September 18, 2024 [Global Flow Control]- Kazakhstan has commenced the construction of its first polyethylene production plant in the “National Industrial Petrochemical Technopark” located in the Atyrau region, according to a report from the Kazakh state company KazMunayGas (KMG).

The project, spearheaded by Silleno, involves significant investment and collaboration. Shareholders in Silleno include JSC NC KazMunayGas (40%), Sinopec Overseas Investment Holding (30%), and PJSC Sibur Holding (30%). The plant, with a planned capacity of 1.25 million tons per year, represents an investment of approximately $7.4 billion.

Construction is set to be completed by 2029. Once operational, the plant is expected to replace imported polyethylene with domestic production and boost exports of high-value products. The project aims to contribute 1.2% to GDP growth and create around 8,000 jobs during the construction phase, with 800 jobs anticipated upon completion.

The plant will offer a diverse range of polyethylene products, including up to 22 grades, with 40% classified as premium. Ethane, sourced from the KMG Gas Separation Complex and derived from Tengizchevroil fields, will serve as the primary raw material for polyethylene production.

The project is financed through shareholder contributions and international bank loans, reflecting a significant investment in Kazakhstan’s petrochemical industry.

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