Moscow. November 25. INTERFAX.EN — The head of KazMunayGas (KMG) Magzum Mirzagaliyev and the head of SIBUR Mikhail Karisalov discussed issues of cooperation in the framework of projects for the production of polypropylene and polyethylene in Moscow, the Kazakh company reported.

The management of KMG informed the partners about the beginning of the design of the plant for the production of polyethylene (JV “Silleno”).

The company notes that in early November, the National Welfare Fund of Kazakhstan “Samruk-Kazyna”, “KazMunayGas”, “SIBUR Holding” and the participants of the operating companies signed the main documents on the creation of joint ventures on the basis of LLP “KPI Inc.” and LLP “Sileno”. The parties defined the terms of partnership in the joint venture located in the territory of the special economic zone “National Industrial Petrochemical Technopark” in Atyrau, in particular, investing in the construction project of a polyethylene plant with a capacity of 1.25 million tons per year, as well as the procedure for the sale of finished products of the enterprise for the production of polypropylene with a capacity of 500 thousand tons per year.

SIBUR confirmed to Interfax that SIBUR, Samruk-Kazyna and KazMunayGas have created a joint venture on the basis of an integrated gas chemical complex for the production of polypropylene with a capacity of 500 thousand tons per year, as well as a project for the construction of a complex for the production of polyethylene with a capacity of 1.25 million tons per year.

“SIBUR’s share in each joint venture is 40%. As part of the joint venture, SIBUR will share its accumulated expertise in launching projects and operating world—class polymer complexes, as well as participate in the training of operational personnel of enterprises,” the Russian company noted.

“The project for the production of polyethylene is under special control of the leadership of Kazakhstan, given the expected effect on the country’s economy and its importance for the development of the petrochemical industry,” KMG quotes Mirzagaliyev.

The polypropylene production plant of Kazakhstan Petrochemical Industries Inc LLP (KPI) was launched in early November, on November 18, the first batch of finished products for export in the amount of 1.5 thousand tons was shipped.

Agreements on the basic conditions of cooperation between the parties were signed in October 2021.