[Haichuan Overseas Engineering] Sinopec Guangzhou Engineering Ningbo Engineering Consortium successfully won the bid for the butadiene project in Kazakhstan

【Ten Years of Rapid Development in Chemical Equipment】The pilot project for producing polyethylene wax on a scale of 100 tons using the ethylene synthesis method at the Shaanxi Coal Research Institute was successfully completed in just one attempt during the batch feeding phase, 3025–2026. https://bbs.hcbbs.com/forum.php?mod=viewthread&tid=5714307 (Source: Haichuan Chemical Industry Forum (HCBBS))

【3D Process Flow】Summary Post – Useful for learning about the process flow: https://bbs.hcbbs.com/forum.php?mod=viewthread&tid=5711616 (Source: HaiChuan Chemical Industry Forum (HuaHaiChuanLiu hcbbs))

What a large-scale project this is – it requires two super-large engineering companies to form a consortium in order to undertake it.

The investment phase is set for July 2025. According to information released by the Kazakhstani government’s press service, the investment phase for this butadiene plant project is scheduled to begin officially on July 1, 2025. Currently, Russia and Kazakhstan have reached a contract agreement with China Tianchen Engineering Company, and the construction of the project is progressing in an orderly manner. The project plans to build four production units, utilizing the licensed processes from the American company Rumus. The raw materials for these production facilities will be supplied by the Tengiz and Korolev oil fields in Kazakhstan. The plant will have the capacity to produce 60,000 tons per year of divinylstyrene rubber (DSSR), 40,000 tons per year of styrene-butadiene-styrene rubber (SBS), and 40,000 tons per year of methyl tert-butyl ether (MTBE). These high-value chemical products will be primarily used in the production of tires, road paving, and high-octane gasoline. This project was initially introduced on February 8, 2025, in an article from Central Asia Industry Research titled “China’s **Energy Group Examines Coal Mines in Kazakhstan: New Opportunities for Investment in Coal Chemicals”. Improving the quality and efficiency of the downstream industry chain for butadiene: As a key chemical raw material, butadiene is widely used in the production of synthetic rubber, plastics, and gasoline additives. In recent years, the global synthetic rubber market has seen a continuous increase in demand for DSSR and SBS, particularly in the automotive and infrastructure construction sectors. Kazakhstan relies heavily on imports for its rubber and plastic products, and the implementation of this project is expected to effectively fill the supply gap in Central Asia. Ashat Hasanov, Deputy Minister of Energy, said that Phase 1 of the project will come online by the end of 2025, while Phase 2 is expected to start by the end of 2026. Once completed, the facility will have an annual rubber production capacity of 100,000 tons, providing raw materials for downstream tire manufacturers such as KamaTyresKz LLP in Salan city. In addition, the project has given rise to several strategic directions, including geological exploration cooperation with Kazakhstan’s KazMunayGas in the Karaton Podsolevoy field, as well as plans for PTA and PET production capacity, reflecting Kazakhstan’s overall strategy for the entire petrochemical industry chain. The integration of Chinese technology with Russian and Kazakhstani capital: Butadiene Co., Ltd. was established in November 2021, with Tatneft holding 75% of the shares, while KazMunayGas initially held 25%. The latter transferred its shares to Samruk-Kazyna in June 2023, which in turn assigned 25% of those shares to Tatneft’s operational management team, thereby creating a mixed-ownership structure that combines strategic investment with local operation. The participation of China Tianchen Engineering Company signifies a further penetration of Chinese companies into high-end chemical engineering projects in Central Asia, as well as its international competitiveness in the field of EPC turnkey contracts. The tripartite cooperation model involving China, Russia, and Kazakhstan behind this project is gradually becoming a model for promoting industrial transformation and the coordinated development of energy processing in Central Asia. The butadiene project is not only a key element in the strategic upgrading of Kazakhstan’s manufacturing sector, but it also reflects the trend of deeper cooperation between Chinese and Russian companies in Central Asia. As the investment phase approaches, this project is expected to become a key pillar of the regional industry chain for new materials and high-value chemical products, helping Kazakhstan secure new strategic advantages in the evolving global energy landscape.

Kazakhstan is rich in oil and gas resources and has an urgent need to upgrade its refining industry, making it an important strategic market for the Refining Engineering Group. Winning this bid for the butadiene project is a landmark achievement for the Refining and Chemical Engineering Group in its efforts to deepen its presence in the Kazakhstan market and to further strengthen energy and chemical sector cooperation between China and Kazakhstan. Faced with fierce international competition, the Refining and Chemical Engineering Group leverages its advantages in a full industrial chain and integrated operations to deliver comprehensive solutions that are technically sound, safe, economical, and environmentally friendly, thereby earning high recognition from clients and demonstrating the value of its reputation in the international market. Focusing on the production of high-end chemical products, this project offers comprehensive services covering technology licensing, process package development and engineering design, procurement, and construction. It will help improve the local petrochemical industry chain, enhance the supply of synthetic materials, and drive the regional chemical industry toward greener, more sophisticated, and higher-quality development. Winning this project not only further strengthens the overall competitiveness of the Refining and Chemical Engineering Group in the Central Asian market, but also enables Chinese technology, equipment, and engineering solutions to go global together, thereby injecting new momentum into energy and economic cooperation between China and Kazakhstan. In recent years, Sinopec Refining & Chemical Engineering Group has made continuous efforts in the high-end chemical engineering market in Central Asia, securing a series of representative new projects. In June 2025, Sinopec Refining & Chemical Engineering Group’s Shanghai Engineering Company and Ningbo Engineering Company, together with the globally renowned engineering firm Tecnimont, formed a consortium to secure the contract for the SILLENO polyethylene project in Kazakhstan. The successful signing of this project is an important achievement in implementing the internationalization strategy of the Refining and Chemical Engineering Group. It has not only enabled the acquisition of experience in managing large-scale international EPC projects throughout their entire lifecycle, but it has also significantly enhanced the global influence of the Sinopec Refining and Chemical Engineering brand.

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