«Kazakhstan Petrochemical Industries Inc.»
(«Казахстан Петрокемикал Индастриз Инк.»)
Limited Liability Partnership

The overall progress of the Integrated Petrochemical Complex Project reached 87.19%.

8 June
2021

On June 8, 2021, as part of a working visit to the Atyrau region, the Prime Minister of the Republic of Kazakhstan - Askar Mamin got acquainted with the construction progress of the Integrated Petrochemical Complex for the Polypropylene production (hereinafter - the IPCC). The Head of the Cabinet of Ministers was accompanied by Akim of Atyrau region - Makhambet Dosmukhambetov; Chairman of the Board of NWF Samruk-Kazyna JSC - Almasadam Satkaliyev.

The polypropylene plant commissioning in 2022 will give a new impetus to the development of related industries. The IPCC includes the construction of technological plants for PDH and PP using licensed technology of one of the world leaders in the field of polymer production - Lummus Technology (American company), as well as 32 off-site facilities.

Since the last visit of the Prime Minister of the Republic of Kazakhstan to the construction site in Karabatan (July 17, 2019), great changes have taken place in the course of the large project implementation.

The Deputy Chairman of the Management Board of KMG for Refining and Marketing - Chairman of the Management Board of Kazakhstan Petrochemical Industries Inc. LLP - Daniyar Tiyesov noted in his report that construction of technological plants and off-site facilities is in progress. The overall progress as per the project schedule for June 8, 2021 is 87.19%.

The KPI specialists have made great efforts to transport and deliver equipment and materials to the construction site. 629 units of LLT equipment and major equipment were delivered, that is 97%. Hundreds of auxiliary equipment arrive from around the world. 5,162 units have been delivered. Steel structures and pipelines are supplied for 97%.

39 subcontracting companies were involved in the construction site, including 36 Kazakhstani companies. Concrete work and installation of underground pipelines were completed. Installation of metal structures, equipment, tanks continues. Installation of process pipelines is underway including the manufacture of pipe assemblies.

Upon mechanical completion of the project in October this year, the commissioning works will be carried out. The first commercial batch of products, in case of successful commissioning, can be received in the 1st quarter of 2022. It should be noted that the full launch of the IPCC will make it possible to produce up to 500 thousand tons of polypropylene per year.

Moreover, within the Project, the construction of transport infrastructure was carried out. The total length of railways is 11.6 km; roads - 4 km.

This Project is unique in that the plant will be fully digitized. All production and corporate KPI business processes will become automated. A Remote Control Center for integrated production will be built in Atyrau.

At the same time, the personnel of the future complex is being trained. It has already been trained at similar industries in Russia and Uzbekistan, at the Atyrau Refinery and Pavlodar Petrochemical Plant, polypropylene plants of Neftekhim LTD (Pavlodar) and Poliom LLC (Omsk). Theoretical and practical training of employees is planned for the current month on the basis of SIBUR enterprises in Tobolsk. In total, 336 people will be provided with jobs for the period of the plant's operation.

“We were given a large-scale and responsible task for the construction of the first Integrated Petrochemical Complex in Kazakhstan and the production of petrochemical products with high added value and subsequent sales in the domestic and export markets. Despite the restrictions due to the pandemic, the work was not stopped, and by the end of this year, we expect the construction to be completed. The launch of the plant will allow not only to develop the petrochemical sector but will also have a positive impact on the country's economy, the development of small and medium-sized businesses", - said Daniyar Tiyesov.

Reference Information:

National Company KazMunayGas JSC is Kazakhstan's national operator for exploration, production, processing and transportation of hydrocarbons. 90.42% of shares of NC KazMunayGas JSC are owned by National Welfare Fund Samruk-Kazyna JSC and 9.58% are owned by the National Bank of the Republic of Kazakhstan.

Kazakhstan Petrochemical Industries Inc. LLP (KPI Inc.) was established in 2008 and is part of the group of companies of NWF "Samruk-Kazyna" JSC. Participants of KPI Inc. are: 99% - United Chemical Company LLP (100% subsidiary of Samruk-Kazyna NWF JSC), 1% - Firm Almex Plus LLP.

The EPC contract was concluded on December 15, 2015, for the amount of USD 1,865 mln. between Kazakhstan Petrochemical Industries Inc. LLP and China National Chemical Engineering Company (PRC). The Loan Agreement was signed in September 2016.

June 28, 2018, in accordance with the instruction of NWF Samruk-Kazyna JSC, the KPI Inc. LLP was transferred to the trust management to "NC "KazMunayGas" JSC.