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KMG PetroChem, a subsidiary of Kazakhstan’s **Oil and Gas Company**, announced on its official website that it has officially signed an EPC turnkey contract with a consortium led by China Petroleum Pipeline Bureau Engineering Co., Ltd. (CPP). Under the contract, the consortium will be responsible for carrying out all tasks related to the project: the engineering design, equipment procurement, construction and installation, commissioning, and final delivery and operation of the main pipeline network (for ethane and propane) in Atyrau Region of that country. The project will build a complete liquid ethane and propane delivery system to ensure a safe, reliable, and uninterrupted supply. The raw materials required for the project mainly come from the joint venture Tengizchevroil and the gas processing plant under construction at the Tengiz field. The ethane and propane supplied by the project will serve as key raw materials and be delivered to downstream polyethylene and polypropylene manufacturing plants. This main pipeline project will become a key element in ensuring the stable operation of chemical production in Kazakhstan in the future. The project is groundbreaking in Kazakhstan: it will be the first time in the country that two main pipelines for ethane and propane are laid side by side within the same technical corridor, with each pipeline being over 210 kilometers long. Construction is scheduled to begin on site in the fourth quarter of 2026, with completion and operation expected by the end of 2028. The implementation of this project will provide key infrastructure for the oil, gas, and petrochemical industry cluster in Atrau Region, thereby strengthening the economic strength of the area. The consortium that won this bid includes the lead party, China National Petroleum Pipeline Bureau Engineering Co., Ltd., and its wholly-owned subsidiary CPPE (Kazakhstan) Ltd., as well as the member party, CITIC Construction Co., Ltd.
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This large order can drive many related industries in the country!
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