KazMunayGas, Kazakhstan’s state-owned oil and gas company, has awarded a significant contract for the development of a steam cracker to a joint venture between the Chinese firm Sinopec and the Spanish company Técnicas Reunidas. As part of this collaboration, Sinopec will provide essential financial backing. This contract is part of a strategic agreement established between Sinopec and Técnicas Reunidas last September, which had its first major outcome earlier this year when they were awarded contracts for two large gas fractionation facilities in Riyadh, Saudi Arabia.

The total investment for the steam cracker project is projected to be approximately €2.3 billion, with both partners in the joint venture equally sharing the financial commitment. The construction is expected to be completed by the end of 2028. Recently, the U.S. company Lummus Technologies was chosen by Sinopec and Técnicas Reunidas to act as the technology licensor for the project.

The steam cracker, a crucial component of any petrochemical complex, will be located in a facility being developed by the KazMunayGas-led consortium in the Atyrau province, situated on the Caspian Sea coast. This facility will utilize natural gas from Kazakhstan’s fields to produce petrochemicals, with an anticipated output of around 1,300 kilotonnes per year (kta) of ethylene.

This project not only represents a significant investment in Kazakhstan’s petrochemical sector but also strengthens international collaborations in energy and technology.

Técnicas Reunidas is a prominent Spanish global engineering firm with more than 60 years of experience in executing over 1,000 industrial plants across 25 countries. The company specializes in designing and constructing facilities for producing clean fuels, natural gas, and petrochemicals. It is also at the forefront of technological solutions related to energy transition, circular economy, and the decarbonization of industrial processes. Its innovative offerings include technologies such as green hydrogen and its derivatives, biofuels, biochemicals, and carbon capture. With a workforce exceeding 10,000 employees, predominantly highly skilled engineers, Técnicas Reunidas has established its headquarters in Madrid as a significant hub of engineering excellence.

KazMunayGas (KMG), established in 2002, stands as the national leader in Kazakhstan's oil and gas sector. The company plays a pivotal role in the country's hydrocarbons business, overseeing the entire production cycle, which includes exploration, extraction, transportation, refining, and various service provisions. KMG is a dominant force in the industry, accounting for an impressive 26% of the nation’s oil production, 56% of oil transportation, and 80% of refining activities. As one of Kazakhstan's largest employers, KMG provides jobs for over 47,000 individuals across its 40 subsidiary companies, making it a significant contributor to the country's economy and workforce development.