M. Mirzagaliyev: Investment from a large TNC was attracted into Kazakhstan’s petrochemistry following the President’s visit to the UAE
Deputy Minister of Energy Magzum Mirzagaliyev said this today during a press conference in the Government press center, talking about the work on attracting investments.
Magzum Mirzagaliyev noted that within the framework of the official visit of the Head of State to the United Arab Emirates on March 24, 2018, two important documents were signed with Borealis with regards to petrochemistry.
The first document is a Term Sheet on the main terms of cooperation for the Polyethylene project in Atyrau region, which fixes a package of state support measures and stipulates the transition to the design stage (development of a feasibility study).
The second document is a Memorandum on consideration of the possibility of joint implementation of the Polypropylene project.
In the process of negotiations with Borealis, we were able to stir their interest in the project Polypropylene as well. Within the framework of the signed Memorandum, Borealis will conduct a feasibility study of the project to make a decision on its joint implementation, � Deputy Minister of Energy Magzum Mirzagaliyev said.
The cost of this project is 2.6 billion USD, capacity � 500 000 tonnes of polypropylene per year.
The project is currently being implemented by United Chemical Company LLP, in particular, an EPC contractor has been identified, borrowed financing has been raised, and construction work has begun. The construction completion date is 2021.
Speaking about the importance of these projects for the country, the Deputy Minister of Energy noted that small-medium-sized enterprises are being formed around the main plants for the production of oil and gas products, which will produce consumer goods. These are dishes, toys, fabrics, household appliances, plastic windows, pipes and much more.
Thus, it can be argued that the creation of Kazakhstan’s petrochemical industry has begun, which in the future can become the flagship of the entire oil and gas industry of the country, � Magzum Mirzagaliyev concluded.
For reference: Borealis is one of the top 4 largest polyethylene producers in the world, being one of the most high-tech and high-margin companies. The shareholders of Borealis are the investment holding Mubadala (UAE) – 64% and the largest in Central Europe oil company OMV (Austria) – 36%. Borealis owns factories in Finland, Austria, Belgium, France, Germany, Sweden, the United Arab Emirates. It is the licensor of its own technology Borstar.
Source: Government of the Republic of Kazakhstan