KazMunayGas Plans to Build PET and Terephthalic Acid Production Unit in Kazakhstan
- 20-Jul-2023 3:44 PM
- Journalist: Nicholas Seifield
The Deputy Chairman of the Board of Strategy, Investment, and Business Development of KazMunayGas announced that the investment portfolio of KazMunayGas includes a project for the production of Terephthalic Acid and the production of Polyethylene Terephthalate (PET) from it. It was announced during the day of the processor organized by the company SIBUR in Almaty.
The KazMunayGas company is the national operator in Kazakhstan for the exploration, development, production, and transport of hydrocarbons and represents the state interests in the oil and gas sector. 90.42 % of the company's shares belong to the state fund "Samruk- Kazyna" and 9.58 % to the state bank of Kazakhstan.
The PET Resin market in the Asian and European markets is facing a low demand situation in the region. PET Bottles prices have been decreasing recently, supported by the decrease in the feedstock Mono-Ethylene Glycol (MEG) prices. The Terephthalic acid market has seen some recovery in its prices, with the price for it increasing during the week ending July 14th, 2023. Currently, there is a contradictory market trend for Terephthalic acid and PET bottles. This is due to the absence of demand fundamentals in the market for PET Bottles, whereas Terephthalic acid prices increased by about 2% in both the European and Asian markets due to the low inventories in the region.
Annually, Terephthalic acid production is planned to be 300 thousand tons while 400 thousand tons PET. At present, suppliers of licensed technologies have been identified. The supply of raw materials and the plant site are under discussion. The plant will be located either near the refinery at Atyrau or at the current polypropylene plant and polyethylene plant. Therefore, the place and the date for the plant's commencement have not yet been decided.
However, Terephthalic acid and PET are currently not produced in Kazakhstan. Previously, the State Program for the Development of the Petrochemical Industry of Kazakhstan planned to construct a PET production complex at 430 thousand tons with USD 700 million in investments.
The international group of companies (Axens) and KazMunayGas have entered into an agreement to work together on the construction of the first integrated gas chemical complex (ICCC). The two companies plan to further develop their cooperation in the context of the First ICCC (ICCC) project, which will be constructed on the territory of the Special Economic Zone (SEZ) in the region of Atyrau. The first ICCC (ICC) design capacity is estimated to be 1,250 000 tons per year of polyethylene.
