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Kazmunaygas and Tatneft set up joint venture for the production of polybutadiene

CIS PETROCHEMICALS

Kazmunaygas and Tatneft set up joint venture for the production of polybutadiene

Kazmunaygas and Tatneft signed an agreement on the creation of Butadiene, a joint venture for the production of butadiene and its derivatives, according to Kazmunaygas press release - Interfax

The production will be commissioned in 2026 in the Atyrau region of Kazakhstan on the territory of National Industrial Petrochemical Technopark SEZ. The planned capacity will be up to 180 thousand tons of butadiene and butadiene rubbers per year, with feedstock for the enterprise supplied from the Tengiz and Korolev deposits.

Kazmunaygas owns 25% of the project’s shares while the remaining 75% belong to Tatneft. The estimated cost of the project amounts to around $ 1 billion, and the parties are considering financing options for the project, including through borrowed funds.

Kazmunaigas press release

A cooperation agreement was signed by the companies in April 2021, as well as a roadmap for the implementation of the project and an agreement for the management of the project company.

Tengizchevroil will produce and supply butane, the required feedstock for the plant. The gas will be supplied to the KamaTyresKZ tyre plant in the Karaganda region, and exported to European countries including Russia, as well as China, Turkey and others.

KamaTyresKZ is a joint project of Tatneft and Kazakhstan’s Allure Group. Commissioning works of the plant are scheduled for the end of 2022, with the reaching of full capacity planned for 2025. The production capacity will amount to 3 million tyres for passenger vehicles and 500,000 tyres for commercial vehicles.

KazMunayGas is the Kazakh national operator for exploration, production, processing and transportation of hydrocarbons, representing the interests of the state in the oil and gas industry. 90.42% of the company's shares belong to the Samruk-Kazyna State Fund, 9.58% - to the National Bank of Kazakhstan.

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