Eurasian Development Bank to finance Silleno polyethylene project in Kazakhstan

The Eurasian Development Bank (EDB) has announced an investment of $450 million toward the implementation of the Kazakhstani Silleno project. This information was shared by Yaroslav Mandron, the Deputy Chairman of the Management Board of the EDB.

Source: Interfax Kazakhstan

These funds will be provided as a bridge loan for the project’s initial phase, while the total financing requirement surpasses $8 billion. The development of the Silleno polyethylene plant is being carried out by a consortium that includes KazMunayGas (40%), SIBUR (30%), and Sinopec Overseas Investment Holding (30%).

Current Construction Status

Construction is actively progressing at the site of the future plant, focusing on two main units: pyrolysis and polymerization.

The future complex will feature:

• Pyrolysis unit for ethylene production (using Lummus technology, USA).
• Ethylene polymerization units (employing Chevron Phillips Chemical and Univation Technologies technology, USA).
• Butene unit (utilizing Axens technology, France).

At present, 812 workers and 177 pieces of equipment are involved in the construction efforts.

Progress Breakdown:

• Pyrolysis Unit: Progress has reached 34%.
• 11,297 out of a planned 13,736 piles have been driven.
• 9,638 $m^3$ of foundations have been completed, exceeding the planned 7,944 $m^3$.
• Polymerization & Offsite Facilities: Overall progress is at 6%.
• 89,632 $m^3$ of soil has been excavated, surpassing the planned 73,342 $m^3$.
• 471 piles have been driven since November 2025.

Market Impact and Production

The Silleno plant is poised to be one of the largest in Central Asia, significantly enhancing Kazakhstan’s position in the global polyethylene market.

• Capacity: 1.25 million tons per year (approximately 1% of global production capacity).
• Product Range: More than 20 grades of polyethylene tailored for key industrial sectors.
• Import Substitution: KazMunayGas (KMG) estimates that Silleno’s products will replace around 90% of imported varieties.

Supply Chain:

The primary feedstock for Silleno will be ethane, sourced from the Gas Separation Complex (GSC) currently under construction at the Tengiz field. The GSC is set to have a capacity of 9.1 billion $m^3$/year of dry gas, from which 1.6 million tons of ethane will be extracted annually.