China’s Sinopec mulls over building new PE plant in Kazakhstan

Chinese petrochemical giant Sinopec is looking to potentially partner up with Kazakhstan’s state-owned JSC NC KazMunayGas (KMG) on the development of a 1.25 million ton/year grassroots polyethylene (PE) plant in the Karabatan special economic zone of Atyrau. 

Sinopec is expected to join as an equal partner alongside KMG and existing partner PJSC Sibur Holding. As part of the deal, Sinopec will allow the plant to run the company’s technologies and expertise in any related petrochemical installations. The deal could also leverage the relationship between the two nations as the plant’s finished products would be sold in the Chinese market. 

Sinopec is yet to make a final decision regarding the participation, but the company has expressed intentions, saying it will sign a formal purchase agreement along with other mandatory documents with the existing partner. 

As of now, KMG and its partner Sibur will go on with preliminary engineering design including the front-end engineering and design (FEED) in May 2023 and the plant is projected to be completed in 2028 according to KMG’s 2022 annual report. KMG and Sibur plan to reach the final investment decision (FID) for the polyethylene plant by 2024.