During the Third Belt and Road Forum for International Cooperation, China Petrochemical Corporation (Sinopec) and Kazakhstan's national oil and gas company KazMunayGas signed a shareholding agreement to invest in the Kazakh polyethylene project, Sinopec announced.
Under this agreement, Sinopec will acquire a 30 percent stake from KazMunayGas and other partners, participating in Kazakhstan's largest polyethylene project. The equity transfer is expected to be completed in the first quarter of 2024. The project is currently in the extended basic design (EBD) phase, with the final investment decision expected in 2024.
Sinopec and KazMunayGas have a long-standing partnership, and the signing of the agreement marks a new level of cooperation between the two companies. Sinopec's advantages in the polyethylene industry chain combined with the local capabilities and resources of KazMunayGas will drive mutually beneficial development.
The polyethylene project has an annual designed production capacity of 1.25 million tons, and it is located in the Karabatan of Atyrau Province, Kazakhstan, near the Tengiz oil field. It aims to produce a diverse range of polyethylene products to meet the growing market demand both regionally and globally.
In addition, during the summit, Sinopec and KazMunayGas signed a preliminary feasibility study agreement for the PTA (Purified Terephthalic Acid) and PET (Polyethylene Terephthalate) project. The two sides plan to explore the construction of PTA and PET facilities in Kazakhstan, subject to the completion of relevant feasibility studies.
(Executive editor: Xie Yunxiao)
