Sinopec, in partnership with Spain, wins bid for 2.3 billion euro project for large petrochemical facility in Kazakhstan

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According to tecnicasreunidas.es on September 18, a consortium led by Kazakhstan’s state-owned oil and gas company, Kazakhstan **Oil Company, entrusted the development of the steam cracking unit to a joint venture composed of Sinopec Group and the Spanish company Técnicas Reunidas. Sinopec Group will provide financial support for the implementation of this project. This article is the fifth in the Central Asia Industry Research series titled “Doing Business in Kazakhstan.” It provides an in-depth overview of the industry policies, laws and regulations, industry trends, market demands, competitive landscape, and potential business opportunities in the fields of investment, trade, and construction in the five countries of Central Asia (Uzbekistan, Kazakhstan, Kyrgyzstan, Turkmenistan, Tajikistan) and their surrounding regions **(Afghanistan, Azerbaijan, Georgia, Armenia, Mongolia). Sinopec and Spanish company Técnicas are collaborating on this project; the award of this contract is part of the strategic agreement signed between Sinopec and Técnicas Reunidas last September. The first outcome of this agreement was the award, in January last year, to two large natural gas fractionation facilities located in Riyadh (Saudi Arabia). The investment required for the construction of this factory is approximately 2.3 billion euros, with each joint venture partner contributing 50% of that amount. According to current estimates, the project will continue until the end of 2028. Rums Technology, the American company that recently announced its participation in this project, has been selected by Sinopec and Técnicas Reunidas as the technology licensor. This facility is a steam cracking unit, which serves as the core of any petrochemical complex; it will be installed in the petrochemical complex being developed by a consortium led by Kazakhstan’s **Oil Company in Atyrau Province on the Caspian Sea coast in western Kazakhstan. The facility will use natural gas from Kazakhstan’s oil fields to produce petrochemical products. It will produce approximately 1,300 kilotons of ethylene per year.