Basell signs MOU for Kazakhstan petchem complex

31 March 2006 14:26  [Source: ICIS news]

LONDON (ICIS news)--Basell has agreed to participate in a joint venture petrochemicals complex in Kazakhstan, the global polyolefins major said on Friday.

It is to take a 35% stake in the project under a memorandum of understanding (MOU) signed with state-owned oil and gas company KazMunayGaz (KMG) and SAT, a privately-owned industrial and commercial conglomerate.

KMG's exploration and production arm will hold a 15% stake and SAT 50%, a Basell spokeswoman said.

The project, which is due for completion in 2010, will be the first integrated worldscale petrochemical complex in Western Kazakhstan, said Basell. It is expected to include an ethane extraction unit in Kulsary and an integrated petrochemical complex in Atyrau.

Basell said the complex will include an 850,000 tonne/year ethane cracker, a 400,000 tonne/year propane dehydrogenation unit, a 400,000 tonne/year polypropylene(PP) plant and two 400,000 tonne/year polyethylene units. One of the units will be low density (ldPE) and the other a swing linear low density/high density (lldPE/hdPE) facility.

Basell was unable immediately to provide an estimate of the capital cost of the project.

“The signing of this MOU highlights the rapid progress achieved and marks a key milestone in the preparation of this important project,” said Basell chief executive Volker Trautz. “When operational in 2010, this facility will establish a new benchmark for the polyolefins industry. The polypropylene and polyethylene units will use Basell’s latest generation process technologies, so manufacturing costs will be among the lowest in the industry, while benefiting from a broad product capability.”

Trautz, who first revealed Basell's planned involvement in the new project in an interview with ICIS news earlier this week, added: “They will also benefit from advantaged feedstocks, since they will be integrated with local gas supplies.

He added that Basell will provide sales and marketing support for the project.

By: Neil Sinclair
+44 20 8652 3214

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