“Construction of the First Integrated Gas Chemical Complex in Atyrau Region. Phase Two (Polyethylene Production)” Project

The polyethylene production project is being implemented in the Karabatan industrial zone, within the National Industrial Petrochemical Technopark Special Economic Zone in the Atyrau region.

The primary goal of constructing a polyethylene production plant in Kazakhstan is to reduce import dependency and develop local production, contributing to economic growth, job creation, and an increase in the country’s export potential.

The production capacity will account for approximately 1% of global polyethylene production, and in terms of scale and technological sophistication, the new plant will become one of the largest enterprises in the world.

Production capacity: 1,250 thousand tons of polyethylene per year

Raw material: Ethane, approximately 1.6 million tons per year

Project implementation period: 2022–2029.

Jobs:
During construction (temporary employment): approximately 8,000 people
During operation (permanent employment): over 800 people

The project is being implemented in accordance with the directive of President Kassym-Jomart Tokayev to develop a petrochemical industry cluster in the western region of the country and will become the largest industrial project in Kazakhstan’s manufacturing sector.

The project is included in the following strategic documents of the Republic of Kazakhstan:

  • Comprehensive Plan for the Socio-Economic Development of Atyrau Region for 2021–2025, approved by Government Resolution No. 337 of May 21, 2021
  • Comprehensive Plan for the Development of Major Oil and Gas and Petrochemical Projects for 2023–2027, approved by Government Resolution No. 1062 of November 30, 2023
  • Roadmap for the Development of the Petrochemical Industry for 2024–2030, approved by First Deputy Prime Minister R.V. Sklyar in November 2024
  • Unified Industrialization Map, approved by Order No. 534 of the Minister of Industry and Infrastructure Development of the Republic of Kazakhstan on September 26, 2022

Technologies:

Steam cracking (pyrolysis) unit Lummus Technology (USA)
Polymerization unit Chevron Phillips Chemical (USA), Univation (USA)
Linear alpha-olefins (LAO) unit Axens (France)

Contractors:

  • Early construction works (site grading, earthworks, construction of on-site and off-site roads, etc.) – BI Industrial LLP.
  • Steam cracking (pyrolysis) unit – Tecnicas Reunidas (Spain) in consortium with Sinopec Engineering Incorporation (China). EPC contract signed on September 18, 2024. On March 31, 2025, a ceremonial first pile driving took place.
  • Polymerization unit and common plant facilities – The signing of the EPC contract is expected in May 2025.

Product Range:

  • The planned product range includes over 20 grades of polyethylene (high-density polyethylene (HDPE) and linear low-density polyethylene (LLDPE)), with 40% classified as premium-grade products.
  • Target markets: Kazakhstan, CIS countries, Europe, China, Turkey.

Applications of Polyethylene in Industry and Everyday Life

Polyethylene is used for manufacturing:

  • Pipes and fittings for gas and water pipelines, sewage, ventilation, and heating systems
  • Containers for liquids, chemicals, fuels, and household waste
  • Various types of films (packaging, covering, geomembranes, etc.)
  • Sliding panels
  • Chemically resistant flooring
  • Optical fiber cable sheathing and wire insulation
  • Automotive parts
  • Power tools
  • Toys
  • Accessories and household appliances
  • Bottles for beverages and cosmetics

Polyethylene in Medicine

Polyethylene is used for the production of:

  • Medical instruments and device components
  • Patient care items
  • Laboratory equipment, sterilization cases, test tubes, pipettes, etc.
  • Soft containers for various purposes, specialized medical dishes
  • Various types of pharmaceutical packaging, connection tubes, syringe tubes
  • Prosthetic and orthopedic products