In 2015 Kazakhstan intends to launch polypropylene production

In 2015 Kazakhstan intends to launch production of polypropylene in Atyrau district, said Askhat Omarov, chairman of Board of the United Chemical Company, at the International Chemical Forum in Moscow.

Polypropylene production is a part of the Integrated Gas Chemical Complex Phase 1 project in Atyrau district. The Phase 1 is operated by Kazakhstan Petrochemical Induatries Inc, a joint venture of the United Chemical Company (51%) and SAT&Company (49%).

Omarov did not specify capacities of the complex. It was earlier reported that it will be 500,000 tons  a year. Omarov said that work on FEED documents is coming to the end. Investments into the Phase 1 of the proejct will total $2.03 billion, of which 24% are funds of the project partners and 76% are loans.

The Phase 2 of the project envisages creation of the polyethylene production with the capacity of 800,000 tons a year. The project investors are LG Chem (50%), SAT& Company (25%) and United Chemical Company (25%). The production is planned to be launched in 2016. Investments into the Phase 2 are estimated at $4,148 billion, of which 30% are investors’ own funds. EPC contract was signed on the Phase 2 of the project with the consortium Petrofac (UK)- GS (Korea) and Linde (Germany). –0—