KazMunayGas begins construction on USD7.4 bn polyethylene complex in Kazakhstan

KazMunayGas has begun construction on a USD7.4-B, 1.25-MMtpy polyethylene plant in the Atyrau region of Kazakhstan, as per Hydrocarbonprocessing.

The project will be implemented in accordance with the order of Kassym-Jomart Tokayev, the Head of State, to establish an oil and gas chemical industry cluster in the country’s western region and will to become the largest project in the manufacturing sector of Kazakhstan.

Construction is expected to be completed by 2029. Commissioning of the plant will help to substitute imported polyethylene with domestic products and boost the high-value-added goods export.

Therefore, implementation of the project is expected to contribute to GDP growth by 1.2% and generate approximately 8,000 jobs during the construction phase and 800 jobs after production commencement. The project is expected to have a multiplier effect on the national economy by fostering the growth of the associated industries and new end products domestically manufactured.

Polythene, recognised as the world’s most prevalent plastic, finds its use virtually across every sector of the economy.

We remind, energy technology solutions developer Lummus Technology has announced a contract with Silleno for an ethylene production facility. It will be part of the first polyethylene plant to be built in Kazakhstan. The complex will have a design capacity of 1.3 million tons of ethylene per year.

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Gevo, Inc. announced the U.S. Patent and Trademark Office has granted to Gevo a patent for its ethanol to olefins (ETO) process, as per Hydrocarbonprocessing.

This patent further cements Gevo’s position as a leader in intellectual property (IP) surrounding bio-based renewable fuel and chemical production from alcohols.

Gevo has been awarded U.S. Patent No. 12,043,587 B2 covering the ETO process. This patent protects the process of using certain proprietary catalyst combinations for converting ethanol into olefins. This process is designed to give best-in-class cost and yields of olefins from ethanol, with improved energy efficiency, which is intended to help to reduce the cost of biofuels and biochemicals.

Olefins with three or four carbon atoms are key building blocks to produce fuels or chemicals. Existing technology makes ethylene, a 2-carbon olefin, from ethanol, and then additional steps are needed to produce the larger and more useful olefins, such as three or four carbon olefins (e.g., propylene and butenes). This patent protects Gevo’s ETO process, which makes three and/or four carbon olefins in addition to ethylene from ethanol in a single step with a high degree of selectivity and control, which is critical for success. The ETO process is expected to reduce energy and capital cost because of the fewer unit operations involved; and reduce complexity of the process design. The ETO process technology can be optimized to produce fuels and/or chemicals, the latter of which has been licensed to LG Chem, Ltd. (“LG Chem”) under the previously disclosed joint development agreement. Together Gevo and LG Chem are working to scale up the process for chemicals.

“We’ve been pursuing simplified alcohol to olefin technology since 2007, understanding that low cost, robust processes to make the right olefins is the critical step to make jet fuel, gasoline, and plastics. It’s our mission to make the transition practical from fossil-based to renewable fuels and chemicals,” says Dr. Pat Gruber, CEO of Gevo. “Key to making the transition are low-cost, drop-in products. The ETO process technology covered by this patent is expected to be a step-change improvement in capital cost and energy efficiency to produce biofuels, such as sustainable aviation fuel (“SAF”), or chemicals, such as propylene, from ethanol.”

LG Chem previously developed a flame-retardant PC/ABS polymer material without perfluoroalkyl substances (PFAS) and using recycled plastic. More than half of the material is made from recycled materials, resulting in a 46% reduction in carbon emissions compared to standard PC/ABS materials.

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Kazakhstan's National Wealth Fund Samruk-Kazyna JSC and the Kazakh subsidiary of Germany's Siemens have signed a partnership agreement on localization of production in Kazakhstan, the Fund's press service reported, as per Interfax.

"It is aimed at the gradual localization in Kazakhstan of measuring equipment, production automation equipment and electrical equipment. The document was signed during the official visit of German Chancellor Olaf Scholz to Kazakhstan," the Samruk-Kazyna statement said.

The agreement provides for the supply of equipment and materials for the localization of production, the creation of joint production in Kazakhstan, personnel training and more, the Fund said.

Kazatomprom and its subsidiary, KAP Technology LLP, entered into a strategic cooperation agreement with Siemens in November 2023 to further enhance digitalization and automation initiatives within the national company's subsidiaries.

KazEnergoPower LLP and Siemens signed an agreement in July 2023 on localizing the manufacturing of medium-voltage switchgears for Kazakhstan's energy industry.

Samruk-Kazyna manages the largest strategic companies in Kazakhstan, including Kazakhtelecom, Kazatomprom, KazMunayGas, Kazpost, Kazakhstan Temir Zholy, KEGOC and others.

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The Maire Tecnimont Group's NextChem, through its subsidiary NextChem Tech, has received two contracts from the State Oil Company of the Azerbaijani Republic (SOCAR) to upgrade and expand the Heydar Aliyev Oil Refinery (HAOR) complex in Baku, the Milan-listed Maire said in a statement, said Interfax.

"NextChem Tech will conduct a technological assessment and deliver a process design package to upgrade the existing sulphur recovery unit (SRU) with oxygen enriched air, a cost-effective and flexible solution for expanding the current sulphur production capacity. Additionally, NextChem Tech will provide the licensing and the process design package based on its proprietary NX SulphuRec technology for a new SRU and outstanding recovery efficiency," it said.

These solutions are aimed at reducing the environmental impact of acid and sour gases produced during the refining process, it said.

The refinery's throughput capacity is currently 6.5 million tonnes per year. It is carrying out extensive modernization and upgrades, after which it will be able to refine all types of crude from the countries of the Caspian region. The project should be completed in 2027.

We remind, Socar and Tatneft may create a joint venture to produce lubricants. Socar closely cooperates with Tatneft. The parties have already signed two roadmaps. Issues on joint production of lubricants are being discussed.

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Germany will sign two contracts to increase oil imports from Kazakhstan for Berlin's main Schwedt oil refinery, sources told Reuters on Sunday, as per Hydrocarbonprocessing.

German Chancellor Olaf Scholz will be in Kazakhstan and Uzbekistan on Monday and Tuesday, on his first visit to Central Asia as Berlin looks for new markets and sources of energy and minerals in the wake of the Ukraine war.

Under the agreement, a monthly supply of 100,000 tonnes of crude oil will be secured until the end of 2025, with a second contract for the supply of up to 50,000 tonnes per month.

The PCK Schwedt refinery has already been purchasing these additional quantities for three months, but they will now be contractually fixed.

Kazakh oil imports have kept the Schwedt refinery running after a sharp drop in Russian oil supplies following European Union sanctions on Moscow for its February 2022 invasion of Ukraine.

Representatives of the German subsidiary of Russia's Rosneft, Rosneft Deutschland, which Berlin put under a trusteeship last year, will sign the agreement in the Kazakh capital Astana.

In 2023, Kazakhstan exported 8.5 MMt of oil to Germany, accounting for 11.7% of Germany's total oil imports, and up from around 6.5 MMt before the Ukraine war.

That jump made Kazakhstan Germany's third-largest supplier after Norway and the United States, data from Germany's Federal Statistics Office showed.

Germany is interested in expanding trade with Kazakhstan while also ensuring such trade is not used to circumvent EU sanctions on Russia, Chancellor Olaf Scholz said on a visit to the Central Asian nation.

"I am grateful for the trusting dialogue between us, through which we want to prevent trade between us from being misused to circumvent sanctions," Scholz said.

After Russian forces invaded Ukraine in February 2022, the West imposed sweeping sanctions on Russia, prompting Moscow to seek circuitous routes for importing technology and goods.

Sources have said that Russian businesses seeking goods banned by the West sometimes procured them from companies based in neighboring Kazakhstan or other former Soviet nations. The Astana government has said it would abide by the sanctions.

Both Scholz and Kazakh President Kassym-Jomart Tokayev said their countries were interested in increasing trade in oil, rare earths, lithium and other raw materials.

"Both sides benefit from this exchange because it allows us to diversify our economies and make them more resilient," Scholz said. "A very concrete example of this is the oil supplies from Kazakhstan, which helped us a lot after Russia failed as a supplier."

The two met ahead of a broader meeting between Scholz and all five Central Asian leaders, an example of more active Western diplomacy in what has traditionally been Russia's backyard.

We remind, Lukoil has launched additional output of the EKTO 100 premium gasoline, producing it at the Perm refinery, as well as at the Nizhny Novgorod refinery. EKTO 100 gasoline has been developed specifically for modern naturally aspirated and turbocharged engines with the highest octane rating requirements, Lukoil said.

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