MOSCOW (MRC) -- Kazakhstan's energy giant KazMunayGas has started construction works on a new butadiene and synthetic rubber plant, said the company.
The production facility is based in Atyrau region, western Kazakhstan, KazMunayGas press-service said in a statement.
On 5 November, the project's operator Butadiene LLP – which is controlled by KazMunayGas - and Kazakhstan’s major oil and gas producer Tengizchevroil, signed an agreement envisaging supplies of 380,000 tonnes/year of butane from Tengizchevroil to the new plant, according to the statement.
The plant, estimated to cost $964m, is to be built by 2025. It would produce 66,000 tonnes/year of butadiene, 83,000 tonnes/year of synthetic rubber and 130,000 tonnes/year of isobutane.
Butadiene LLP is discussing possible license agreements with Lummus, Versalis (Eni) and ETIC, according to KazMunayGas.
Earlier it was reported that on November 8, KazMunayGas launched a new plant for the production of polypropylene with a capacity of 500 thousand tons per year in Atyrau, Western Kazakhstan. The new plant is valued at USD2.6 billion and will be able to produce up to 65 types of polypropylene to meet domestic demand, as well as export polypropylene to foreign markets. It uses Catofin and Novolen technologies provided by Lummus Technology.
The project is managed by Kazakhstan Petrochemical Industries, owned by the National Welfare Fund Samruk-Kazyna. The plant was built by China National Chemical Engineering.
KazMunayGas is Kazakhstan's national operator for the exploration, production, processing and transportation of hydrocarbons, representing the interests of the state in the oil and gas industry. 90.42% of the company's shares belong to the state fund "Samruk-Kazyna", 9.58% - to the National Bank of Kazakhstan.