Kazakhstan close to award in drive to cash in on associated gas from major projects

The winner of the tender for the construction of a plant for the production of 1.25 million tons of polyethylene per year of the Sileno company (KazMunaiGas - 40%, SIBUR - 30% and Chinese Sinopec - 30%) in the Atyrau region may be announced at the end of February, Upstream Online reports.

The tender participants include Chinese Sinopec Engineering (the engineering division of Sinopec Group) together with Tecnimont and Korean DL EC with another Chinese company - CC-7. Thus, in any case, one of the winners will be a Chinese company. According to the publication, it is expected that the EPC contract (Engineering, procurement and construction - an EPC contract in which the contractor assumes responsibility for the design, purchase, construction of the facility and its commissioning) will be concluded at the end of February. The contract covers all key elements, including a steam cracker to produce ethylene and hydrogen from ethane supplied via pipeline, two reactors to produce about 20 grades of polyethylene and linear alpha olefins. The plant will produce 1.25 million tons of polyethylene per year by processing about 1.6 billion cubic meters of gas supplied from Tengiz.

The construction of the facility, located about 35 km from Atyrau, is planned to be invested about $7.4 billion. Commissioning of the plant is scheduled for January 2029. However, the plant was initially planned to be launched in 2028.

The expected level of capital investment (costs for construction and installation work, acquisition of equipment, tools, inventory, etc.) in the joint project of Kazakhstan, China and Russia to build a polyethylene plant may amount to about $8 billion, plus or minus $1 billion, said Deputy Chairman of the Board of KazMunaiGas (a subsidiary of Samruk-Kazyna) Diana Arysova in August at the issuer's day on the Kazakhstan Stock Exchange (KASE). However, she did not specify whether these would be capital investments only from KMG or from all three participants.

After launch, the plant will use electricity generated by Karabatan Utility Solutions (four gas turbine generators with a capacity of 57.9 MW each and two steam turbine generators with a capacity of 64.7 MW). As a reserve, there is a connection to the external networks of KEGOC. In addition, Karabatan Utility Solutions will provide heat supply to the plant using a 110 MW gas boiler house. More details about the project can be found here.

At the end of 2024, Pavel Lyakhovich, member of the board and executive director of the largest Russian petrochemical company SIBUR, predicted during a press tour with the participation of Kursiv that polyethylene consumption in Kazakhstan by 2030-2031, when the Atyrau plant for its production may reach its production capacity, will increase to at least 260-270 thousand tons per year from the current 190 thousand tons.

At the same time, according to his estimates, Kazakhstan will not be able to consume all 1.25 million tons of polyethylene either by 2030 or by 2035. In this regard, the bulk of the products manufactured in Atyrau will be exported, including to Europe, Turkey and Southeast Asia. Lyakhovich noted that, given the high cost of the project, the participants of Sillenos intend to attract both their own and borrowed funds.

mrchub.com

Syensqo SA (Brussels) said it has entered into a five-year partnership with the biotechnology startup Bota Bio (Hangzhou, China) to develop biomimetic ingredients for personal care, as per Chemweek.

Syensqo will make use of Bota Bio’s performance protein technology to drive innovation in hair and scalp care, the company said.

This collaboration is in line with Syensqo’s commitment to expand its portfolio of renewable and biotechnology-enabled solutions, Syensqo said, adding that the partnership was driven by Syensqo Ventures, the company’s function dedicated to accelerating innovation by identifying and collaborating with emerging startups.

“Syensqo Ventures and Bota Bio share a common view that transitioning cutting-edge technologies into sustainable applications requires partnerships across the value chain and between corporations and startups alike,” Syensqo said.

We remind, the State Oil Company of the Azerbaijani Republic (SOCAR) has opened an office in Albania, Albania's Albgaz said. General Director SOCAR Albania Murad Heydarov said SOCAR's representation is important for Albania's infrastructure development, which will begin with a pilot project, Albgaz said. This project involves developing gas infrastructure for the city of Korce in cooperation with Albgaz.

mrchub.com

The State Oil Company of the Azerbaijani Republic (SOCAR) has opened an office in Albania, Albania's Albgaz said, as per Interfax.

"The opening ceremony for SOCAR's Albania office took place on February 10, attended by the ambassador of Azerbaijan to Albania, Anar Huseynov, a representative of the Albanian Infrastructure and Energy Ministry, and Albgaz Sh.a. General Director Skerdi Drenova," it said.

General Director SOCAR Albania Murad Heydarov said SOCAR's representation is important for Albania's infrastructure development, which will begin with a pilot project, Albgaz said. This project involves developing gas infrastructure for the city of Korce in cooperation with Albgaz.

An agreement on cooperation between SOCAR Albania and Albgaz was signed to initiate the project for Korce's gas infrastructure development.

As reported, SOCAR signed a memorandum of understanding with the Albanian Infrastructure and Energy Ministry and Albgaz on the sidelines of COP29 in Baku in November 2024. The memorandum aims to develop gas infrastructure in Korce.

The feasibility study for the project has already been completed. The city's gas infrastructure development is scheduled to begin in 2025 and be completed by 2027, with investment estimated at approximately 21 million euros.

The project aims to supply gas to both households and businesses in Korce. Initially, the focus will be on establishing a gas distribution network throughout the city, with particular emphasis on serving local enterprises. The distribution system will be connected to the exit point of the Trans Adriatic Pipeline, which delivers natural gas from Azerbaijan to Europe via Albania.

Korce was chosen as the pilot project for Albania's national gas infrastructure development strategy, supported by SOCAR, because the city's residents have proven to be responsible in paying for utilities, with no outstanding debts to water, sewage, or electricity companies.

In the future, the project will be expanded to the cities of Pogradec and Erseke. Overall, Albanian authorities aim to complete development of the country's gas infrastructure by 2030.

mrchub.com

Symrise AG said the China National Intellectual Property Administration (CNIPA) is upholding the validity of Chinese patent for the technology behind the multifunctional, antioxidant, product protectant enhancer ingredient, as per Chemweek.

The CNIPA decision secures Symrise's exclusive rights to utilize and commercialize SymSave H technology in China and strengthens company’s position in the cosmetics and personal care market, it added.

CNIPA’s decision follows a rigorous review process, including bilateral invalidation proceedings. This confirms that the SymSave H technology meets China’s strict patent criteria, including novelty, inventiveness and clear disclosure, said Symrise.

According to the company, by promoting gentler, consumer-friendly formulations, SymSave H supports cleaner labeling, effective product protection and consistent quality. “By working in synergy with other multifunctional, it improves the performance of personal care formulations,” it added.

We remind, the State Oil Company of the Azerbaijani Republic (SOCAR) has opened an office in Albania, Albania's Albgaz said. General Director SOCAR Albania Murad Heydarov said SOCAR's representation is important for Albania's infrastructure development, which will begin with a pilot project, Albgaz said. This project involves developing gas infrastructure for the city of Korce in cooperation with Albgaz.

mrchub.com

SK picglobal (Seoul, South Korea) has shut down the 130,000 metric tons per year hydrogen peroxide-to-propylene oxide (PO) unit at Ulsan in early February due to poor profit margins, as per Chemweek.

“Maybe we will resume in March,” the company source said to S&P Global Commodity Insights.

The plant resumed operations in January at a 50% rate following a month-long maintenance before the shutdown.

SK picglobal has another 180,000 metric tons per year PO styrene unit at Ulsan, which is running at 90% and is expected to continue for the rest of the month.

We remind, Petronas Chemicals Group Bhd. (Kuala Lumpur) resumed ethanolamine production at its 75,000 metric tons per year plant in Kerteh, Malaysia, in January after a month-long shutdown. The unit was shut down in December because its upstream plant faced a production issue.

mrchub.com