Sinpoec Reaches Agreement With Kazakhstan To Build A Petrochemical Complex

Sinopec announced that it has reached an agreement with Kazakh state-owned oil and gas business KazMunayGaz to build a gas-based petrochemical complex in Kazakhstan's Atyrau area, with a final investment decision expected in 2024.

The deal was signed on the margins of the China-Central Asia Summit, which is currently taking place in Xian, China's Shaanxi province, where China President Xi Jinping is meeting with the leaders of five ex-Soviet countries to discuss greater cooperation in a variety of industries, including energy.

The firms agreed to construct a petrochemical complex with an annual capacity of 1.275 million tonnes that will convert ethane, a byproduct of natural gas fields, into ethylene.

They also agreed to develop two polyethylene plants, each with a capacity of 625,000 tonnes per year, according to the newspaper.

On Wednesday, President Xi met with his Kazakh counterpart, Kassym-Jomart Tokayev, and the two discussed strengthening bilateral trade and economic ties.

Sinopec, PetroChina, and CNOOC, China's three largest state-owned oil companies, have all previously invested in Kazakhstan's oil and gas sector. PetroChina, along with Western oil giants and KazMunayGaz, is a member of the consortium developing the Kashagan project in the Caspian Sea, Kazakhstan's second-largest producing field.

In 2022, investment between China and the five countries will hit a new high of more than $70 billion.