Turkmenistan launches new gas chemical complex

MOSCOW (MRC)–Production has begun at a new gas chemical complex (GCC) for processing natural gas and producing polyethylene (PE) and polypropylene (PP) at Kiyanly in Turkmenistan, according to MRC analysts.

Testing started in August with an official launch of production on 17 October.

Sales of test quantities of PE and PP began at the Turkmen State Commodity and Raw Materials Exchange in early September.

The trades participants said about 4,000 tonnes of polymers have already been sold since the start of sales.

In the first half of October, deals were done at $1,100/tonne FCA (free carrier) Kiyanly, with shipment within a two-month period.

The complex’s production capacity will allow the processing of 5bn cubic metres (cbm) of natural gas per year, which in turn will allow the production of 381,000 tonnes of high density polyethylene (HDPE) and 81,000 tonnes of PP and other products.

Construction of the $3.4bn plant began in 2014 in accordance with a trilateral contract among the Turkmengaz State Concern and South Korean companies LG International Corp and Hyundai Engineering Corp, as well as Japanese TOYO Engineering Corp.

Kiyanly is located on the western coast of Turkmenistan.

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