KazMunayGas chairman reviews progress on polyethylene plant construction in Atyrau

During a working visit to the Atyrau region, Askat Khasenov, Chairman of the Management Board of JSC NC “KazMunayGas”, visited the construction site of the Silleno polyethylene plant, which will have an annual production capacity of 1.25 million tonnes.

Source: KazMunayGas

This large-scale downstream project is being implemented as part of President Kassym-Jomart Tokayev’s directive to develop a national oil and gas chemical cluster.

On 31 March 2025, the first piles were driven for the pyrolysis unit (for ethylene production) at the National Industrial Petrochemical Technopark Special Economic Zone. The EPC contractor for this unit is Tecnicas Reunidas (Spain) in consortium with Sinopec Engineering Incorporation (China). To date, 5,329 piles (30%) out of a total of 17,962 have been installed. Piling work is expected to be completed by the end of the year. Orders have also been placed for 44 pieces of long-lead equipment, including two of the plant’s largest columns and deaerators, which will be manufactured at Atyrauneftemash.

The EPC contractor for the second unit — polymerisation (for polyethylene production) — is Tecnimont S.p.A. (Italy) in consortium with SINOPEC Shanghai Engineering Co. (China). Construction of the polymerisation unit is scheduled to begin in October 2025.

Mr Khasenov emphasised the project’s importance for the socio-economic development of both the region and the country, stressing the need to maximise local content. He instructed all parties involved to ensure construction is completed according to the approved timeline.

Currently, 325 workers are involved in the construction phase, and this number is expected to exceed 8,000 at peak activity. Once operational, the plant will create around 800 permanent jobs.

With a total investment exceeding USD 7 billion, construction is planned to be completed by 2028, with production launch set for 2029.

Background:

The project is being developed by Silleno, a joint venture between JSC NC “KazMunayGas” (40%), Sinopec Overseas Investment Holding (30%), and PJSC SIBUR Holding (30%). The plant will produce more than 20 grades of polyethylene, aiming to fully meet Kazakhstan’s domestic demand and export to the CIS countries, Europe, China, and Turkey.