LONDON (ICIS)--SIBUR has signed a framework agreement with Kazakhstan sovereign wealth fund Samruk-Kazyna and state oil and gas company KazMunayGas that could allow the firm take a role in petrochemicals projects set to add nearly 2m tonnes/year of polymer capacity in the country.
SIBUR is considering taking a role in an ongoing project involving the construction of a gas chemical complex to produce 500,000 tonnes/year of polypropylene (PP).
The company is also mulling a role in a future project to build a 1.25m tonne/year polyethylene (PE) facility in the country.
Raw materials for the projects would be sourced by the partners in the proposed joint venture. SIBUR's decision on both projects is expected by the end of 2021.
“Our partners have extensive experience in constructing and operating large facilities in the oil and gas production, transportation and processing and will in turn be able to support the projects with the necessary raw materials and infrastructure within the special economic zone,” said SIBUR CEO Dmitry Konov.
The proposed partnerships would be the latest big move by SIBUR near Russian borders, after agreeing in April to merge its petrochemical operations with Tatarstan refiner TAIF, which is expected to expand production at the company’s petrochemicals complex in the Russian republic.
Under the terms of the agreed deal, TAIF shareholders will receive a 15% stake in PJSC SIBUR in exchange for a controlling interest in the company, to create one of the largest polyolefins and rubber producers in the world.
SIBUR is also moving forward with a gas chemicals complex in the Amur region, near the Chinese border and far from any large urban hubs in its home country. The project, which counts Sinopec as a partner, is expected to cost at least $10bn-11bn.
Front page picture: Kaz Munai
Gas building, Astana,
Source: Michael Runkel/imageBROKER/Shutterstock