KMG PetroChem, a subsidiary of Kazakhstan’s national oil and gas company KazMunayGas (KMG), has signed an engineering, procurement and construction (EPC) contract with Tecnimont S.p.A. of Italy and Consolidated Contractors International Company (CCIC) of Lebanon for the construction of a gas separation facility (GSF) at the Tengiz field, KMG announced.
According to the release, the EPC contract covers the design, procurement and turnkey construction of a gas separation complex with a processing capacity of up to 9.1 billion cubic meters of dry gas per year.
The GSF will supply raw materials for the future Sillenno LLP plant, which is expected to produce 1.25 million tons of polyethylene annually. The new facility will extract up to 1.6 million tons of ethane and 360,000 tons of propane per year from dry purified gas provided by Tengizchevroil, the operator of the Tengiz field.
Construction and engineering work began in May 2025. KMG noted that the project will help establish a sustainable feedstock base for Kazakhstan’s petrochemical industry, enabling the production of high-value-added goods. Special emphasis will be placed on developing local content by involving Kazakhstani companies in project execution, service provision and supply of goods.
KMG PetroChem, a wholly owned subsidiary of KMG, is responsible for implementing and coordinating the group’s petrochemical projects. Tecnimont S.p.A. is part of Italy’s Maire Group, a global leader in engineering for the processing industry. CCIC, founded in 1952, specializes in large-scale oil and gas, petrochemical and infrastructure projects.
KMG will finance part of the construction through a loan to KMG PetroChem. In March, the company told Kursiv.media that $1.12 billion of the total $2.8 billion project cost will come from Kazakhstan’s sovereign wealth fund, the National Fund. An additional $560 million is expected to be provided on preferential terms by KMG.
