KMG, Sibur and Sinopec begin construction of polyethylene plant in Atyrau region
The construction of a new polyethylene plant has begun in the Atyrau region, according to the press service of KazMunayGas (KMG). This project, aimed at boosting the development of Kazakhstan’s chemical industry, is being implemented by KMG in partnership with Russia’s Sibur and China’s Sinopec. The project is expected to be completed by 2029.
The official groundbreaking ceremony was attended by Governor of the Atyrau region Serik Shapkenov, CEO of KMG Askhat Khassenov, Sibur representative Sergey Komyshan and Sinopec representative Zhao Tiezhu.
The construction of the plant in Atyrau is part of Kazakhstan’s strategy to develop its petrochemical industry and reduce imports of related products. The plant is expected to be one of the largest in Central Asia, meeting domestic demand for polyethylene while also creating additional jobs in the region.
Although the project was originally scheduled for completion in 2028, the expected commissioning date has now been shifted to 2029. Once operational, the plant will play a crucial role in enhancing the country’s export potential, solidifying Kazakhstan’s position in the international polyethylene market.
The Polyethylene project was conceived in November 2022, when Samruk-Kazyna, KMG and Sibur Holding signed a foundational agreement to establish the new plant. The plant will be based on two companies: Kazakhstan Petrochemical Industries (KPI), owned by KMG (49.5%), Sibur Holding (40%), SK (9.5%) and Almex, and Silleno, which is jointly controlled by KMG, Sinopec, Sibur and KMG PetroChem. In May 2023, the project participants agreed to bring Sinopec on board as a new partner. After Sinopec attained co-founder status in April 2024, the ownership structure of the Silleno project became as follows: KMG (40%), Sinopec (30%) and Sibur (30%).
The future plant will have a production capacity of 735,000 tons of thermoplastic polymer per year. The estimated cost of the project is $7.7 billion, which is expected to be funded by shareholders and international banks through loans.
