Platts 2005/11/23
Kazakhstan to sign petrochemical complex deal by Dec 15
The Kazakhstan's government plans to sign the first agreement
with foreign companies to build petrochemical complexes by Dec 15
as the country aims at becoming a serious player on the world
market, Kazakhstan's prime minister Danial Akhmetov said
Wednesday, as reported by national Kazinform news agency.
The government plans to sign an agreement which is to allow the
country to develop [petrochemical] sector, Akhmetov said on the
sidelines of a petrochemical conference in Kazakhstan's capital
of Astana.
Kazakhstan plans to build two large petrochemical complexes at
the Tengiz and Kashagan fields to produce up to 2-mil mt of
petrochemicals. Investments in the projects are estimated at
around $7- to $8-bil. Of the total, the country plans to invest
some $500-mil "in the near future."
"The most perspective sector of petrochemicals for
Kazakhstan is gas processing. It is this sector to allow the
country to become a serious competitor to all world
companies," Akhmetov was quoted as saying.
Kazakhstan has set up several working groups, in particular with
Lukoil, which is to build a gas chemical complex near the
Khvalynskoye field in the Caspian Sea, Akhmetov said. The project
envisages processing of over 14-bil cu m/yr of gas at the field.
Akhmetov also mentioned LG and Shell, among other companies,
negotiating the issue with the government. Usage of advances
technologies are among Kazakhstan's main conditions for
participating in the projects, Akhmetov said.
The national KazMunaiGaz is to represent Kazakhstan in the
projects, where the government plans to hold at least a 50%
interest.
Kazakhstan plans to raise gas production to 1.2-trillion cf in
2005, up 65% from 720 Bcf last year, and to increase gas output
further to 1.66-tril cf by 2010, according to KazMunaiGaz.
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Foster Wheeler 2005/12/15
Foster Wheeler Awarded
Detailed Feasibility Contract In The Republic Of Kazakhstan
http://www.corporate-ir.net/ireye/ir_site.zhtml?ticker=FWLT&script=417&layout=-6&item_id=796203
Foster Wheeler
Ltd.announced today that its Italian subsidiary Foster Wheeler
Italiana S.p.A. has been awarded a contract by KazMunaiGas
Exploration and Production (KMG EP) for a detailed feasibility
study for a new petrochemical complex and related facilities to
be built in several locations in Western Kazakhstan. KMG EP is
the state-owned oil and gas company of the Republic of
Kazakhstan. The terms of the award of the study, which will be
included in Foster Wheeler's fourth-quarter 2005 bookings, were
not disclosed.
The proposed facilities, for which the expected final total
investment cost is in excess of $4 billion, would be built in two
phases. Phase 1 would include a gas separation unit to be built
near the town of Kulsary to treat dry gas from the Tenghiz field and separate ethane and propane,
and a petrochemical complex to be built near the city of Atyrau to
process the ethane and propane and produce polyethylene and
polypropylene.
Phase 2 would include an additional gas separation unit to be
built in Karabatan to treat dry gas from the Kashagan field and expansion of the Atyrau
petrochemical complex. The final capacity of the Atyrau complex
would be up to 1,500,000 tons per year of
polyethylene and up to 450,000 tons per year of polypropylene.
gWe
are delighted to have been selected by KMG EP and to have the
opportunity to participate in such a large and prestigious
investment that would contribute substantially to the Republic of
Kazakhstan's industrial development. This award reflects the
quality and the depth of our technical and project execution
expertise, and also our considerable petrochemicals and gas
processing experience,h said Giorgio Veronesi, project
director and executive sponsor of Foster Wheeler Italiana's
projects in the Commonwealth of Independent States (CIS).
gWe
have selected Foster Wheeler Italiana after an international
competitive tender, in accordance with Kazakhstan State
purchasing rules. We were pleased with Foster Wheeler's tender:
its competitive pricing, aggressive schedule and its proposed
execution strategy for the study,h said Roustem Bekturov, deputy
general manager of KMG Exploration and Production.
The feasibility report is expected to be completed in the first
quarter of 2006. The facilities are expected to be mechanically
completed between 2009 and 2012, depending on the final selected
configuration and execution scheme.
Foster Wheeler Ltd. is a global company offering, through its
subsidiaries, a broad range of design, engineering, construction,
manufacturing, project development and management, research and
plant operation services. Foster Wheeler serves the refining,
upstream oil and gas, LNG and gas-to-liquids, petrochemicals,
chemicals, power, pharmaceuticals, biotechnology and healthcare
industries. The corporation is based in Hamilton, Bermuda, and
its operational headquarters are in Clinton, New Jersey, USA. For
more information about Foster Wheeler, visit our Web site at http://www.fwc.com.
2006/3/31 Basell
Basell signs MoU with KazMunayGaz and SAT for petrochemical
complex in Kazakhstan
Basell signs memorandum of understanding with KazMunayGaz and SAT
for first integrated worldscale petrochemical complex in Western
Kazakhstan
Following a meeting with Daniyal Kenzhetayevich Akhmetov,
Kazakhstanfs Prime Minister, Basell has
signed a memorandum of understanding (MOU) with KazMunayGaz
Exploration & Production (KMG EP) and SAT & Company (SAT)
confirming their intention to construct and operate a new
petrochemical project in Kazakhstan.
The project is expected to include an ethane
extraction unit in Kulsary and an integrated
petrochemical complex in Atyrau. The planned petrochemical
complex includes a worldscale ethane cracker
and polyethylene
facilities, as well as a propane dehydrogenation unit and
polypropylene
facility. Start up is planned for 2010.
gThe
signing of this MOU highlights the rapid progress achieved and
marks a key milestone in the preparation of this important
project,h said Volker Trautz, CEO of Basell,
who participated in the recent meeting with the Prime Minister. gWhen operational in 2010, this
facility will establish a new benchmark for the polyolefins
industry. The polypropylene and polyethylene units will use
Basellfs latest generation process
technologies, so manufacturing costs will be among the lowest in
the industry, while benefiting from a broad product capability.h
Trautz added, gThey will also benefit from
advantaged feedstocks, since they will be integrated with local
gas supplies. As the leading polyolefins supplier worldwide and
the largest polyethylene producer in Europe, Basell will provide
sales and marketing support for the project.h
In addition to
providing technology and sales and marketing services, Basell
intends to participate directly as a shareholder in the project.
KazMunayGas (KMG) was founded in 2002 as a
result of the merger of CJSC National Oil Company Kazakhoil and
NC Oil and Gas Transportation. This state owned company was
created with the goal of developing Kazakhstanfs oil and gas resources. KMG EP is
the operating subsidiary responsible for exploration and
distribution of oil and gas. KMG is also a shareholder in
TengizChevrOil (TCO) and Agip KCO.
SAT is a privately owned, diversified
conglomerate with industrial, commercial and service activities.
Basell is the world's largest producer of polypropylene and
advanced polyolefin products, a leading supplier of polyethylene
and catalysts, and a global leader in the development and
licensing of polypropylene and polyethylene processes. Basell,
together with its joint ventures, has manufacturing facilities
around the world and sells products in more than 120 countries.
Additional information about Basell is available at
www.basell.com.
Kazakhstan's Sat & Company and
Exploration Production KazMunaiGaz are shareholders of
Atoll.
Atoll owns the biggest petrochemical plants in Kazakhstan
- the Atyrau plant Polipropilen and Sat Operating Aktau,
a polystyrene plant (formerly Aktau Plastics). The plants
are located in the Atyrau and Mangistau oil producing
regions. [[[
http://www.jamestown.org/edm/article.php?article_id=2372173
Earlier this year, Basell was reported to be mulling
plans to acquire a 35% stake in Kazakhstan Petrochemical
Industries (KPI) from the holding company Sat & Co.
After this acquisition, Sat & Co. would continue to
be the largest shareholder with 50%, while KMG would hold
the other 15%.
KPI, formerly Atoll, already
controls the Aktau Polystyrene
Plant and Atyrau Polypropylene Plant. The Aktau
plastics plant has a designed capacity of 300,000
tons/year of styrene and 54,000 tons/year of polystyrene,
while the Atyrau Polypropylene Plant has a designed
annual capacity of 30,000 tons/year of polypropylene.
Production at the Aktau Plastics Plant has been halted
since August 2003, but it was re-launched two years ago.
The Atyrau petrochemical complex is the latest component
of a series of Kazakhstan's planned homegrown projects.
Back in 2002, Agip KCO, the international consortium
exploring the potential of Kazakhstan's Kashagan field in
the Caspian Sea, indicated tentative plans to build a gas
processing plant in Karabatan, some 20 miles from Atyrau.
The facility was expected to become a major source of
sulfur for the global market, but the project proved slow
to materialize.
In October 2005, the Kazakh government drafted a $7
billion national plan to develop the petrochemical
sector, which envisaged building a total of nine new
petrochemical plants. The new facilities would produce
ethylene, propylene, styrene, benzene, polyethylene,
polypropylene, polystyrene, methanol, and
mono-ethylene-glycol, according to the government
blueprint. The blueprint envisaged creation of some
60,000 new jobs in the petrochemical sector in the coming
15 years.
In April 2007, KMG indicated plans to build a $1.2-1.5
billion natural-gas-processing plant at Karachaganak. KMG
head Uzakbai Karabalin told a government meeting that KMG
would start construction of the plant in late 2008 or
early 2009 and that the facility would have an annual
capacity of 5-7 billion cubic meters of gas (Kazinform,
April 18).
The Kazakh government was reported to be considering
overseas petrochemical projects as well. In March 2007,
KMG was reportedly interested in joining a $4.9 billion
project to build a 300,000 barrel-per-day refinery in the
Turkish Mediterranean port of Ceyhan in partnership with
Calik Energy and Indian Oil. Kazakhstan's interest in the
project was understood to be connected with the
possibility of transporting Kazakh crude supplies via the
Baku-Tbilisi-Ceyhan pipeline.
There were also plans for Russia's direct involvement in
petrochemical and gas processing projects in Kazakhstan.
In November 2005, then-Kazakh Prime Minister Daniyal
Akhmetov announced that KMG and Russian oil major Lukoil
planned to build a joint gas-chemical complex in the
Caspian littoral region of Western Kazakhstan. It was
supposed to process gas from offshore fields, jointly
developed by Kazakh and Russian companies. However,
neither side has announced concrete moves to implement
this project.
|
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2006/8/16 Chemweek's
Business Daily
Basell to Enter
Kazakhstan Petchem JV Soon
Basell will acquire a 35% stake in
Kazakhstan Petrochemical Industries (KPI; Almaty) from Sat & Co.
(Almaty) by the end of this summer, paving the way for KPI to
build a previously announced $4-billion petrochemicals complex at
Atyrau, Kazakhstan, KPI says. Sat & Co.'s stake in KPI will
fall from 85%, to 50% following the transaction. The remaining
15% of KPI is held by government energy group
KazMunayGaz Exploration & Production (Almaty).
About $1.2 billion of the
planned investment will be financed by the joint venture partners
and the rest will be provided by international project financing,
KPI says. Construction will start in the third quarter of next
year and completion is expected three years later.
The complex will use Basell technology and have capacity for 400,000 m.t./year
each of low- or
high-density polyethylene; linear low density
polyethylene;
and polypropylene (PP).
A
400,000-m.t./year propane dehydrogenation unit will provide feedstock to the PP
plant.
May 17, 2007 Reuters
Kazakhs plan $5 bln
petrochemical plant
Kazakhstan's state energy
firm Kazmunaigas will start building a $5.2 billion petrochemical
plant near the giant Kashagan oil field in December, a Kazakh
energy ministry official said on Thursday.
"We in Kazakhstan have large amounts of gas with ethane
presence of between 13 to 16 percent. So it makes perfect sense
to build a petrochemical complex," said Raushan Sarmurzina,
head of the ministry's technology development department.
The plant would annually produce 1.2 million tonnes of ethylene,
polyethylene and polypropylene and would process gas from the
giant Tengiz oil field, led by U.S. Chevron, in its first stage.
It would later also process gas from the huge offshore Kashagan
field, led by Italy's Eni.
Netherlands-based Basell Holdings BV, a big polypropylene
producer, is named as a strategic partner in energy ministry
documents detailing the project.
The plant is expected to be built in three to five years by an
operating company, Kazakhstan Petrochemical Industries, set up by
KazMunaiGas and SAT & Company, a private Kazakh company with
petrochemical and airlines interests.
Sarmurzina said the project will be financed by KazMunaiGas
itself, the government and investors.
The Tengizchevroil (TCO) joint venture has developed the
Tengiz field since 1993. The major partners in Tengizchevroil
are Chevron (50% ownership), ExxonMobil (25% ownership), the
Kazakhstani government through KazMunayGas (20% ownership)
and Russian LukArco (5%).
Kashagan Field is an oil field located in
Kazakhstan. The field is situated in the northern part of the
Caspian sea close to the Kazakhstan city of Atyrau. The field
was discovered in 2000. The field is operated by Eni under
the North Caspian Sea Production Sharing Agreement. The
Agreement is made up of 7 companies consisting of Eni
(18.52%), Shell (18.52%), Total (18.52%), ExxonMobil
(18.52%), ConocoPhillips (9.26%), KazMunayGas (8.33%), Inpex
(8.33%). The original group included BG Group instead of
KazMunayGas; however BG sold its stake to the partners in
2004. Eni operates this project under the JV company name of
AgipKCO (Agip Kazakhstan North Caspian Operating Company
N.V.)
2007/9/6@JUtX^ΜΞϋJf@http://www.knak.jp/blog/2007-09-1.htm#kashagan
One of the larger discoveries of this decade, it is
estimated that the Kashagan Field has commercial reserves
from 9 to 16 billion barrels of oil. The field is offshore in
a harsh environment, where sea ice is present in the winter
and temperatures from -35 C (-31 F) to 40 C (104 F)can
be encountered. Production is expected to begin either in
2008 or 2009, later than the initial plan date of 2005.
Currently (2006) the original concept is being redesigned and
first oil may be even later, probably on Q3 of 2010. It has
designated as the main source of supply for the
Kazakhstan-China oil pipeline.[1]
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Platts 2007/9/25
Kazakhstan, Chevron to
agree on Tengiz gas price for petchem unit
KazMunaiGaz
expects
within a month to agree with TengizChevroil--the Chevron-led
consortium developing
the giant Tengiz field in western Kazakhstan--on the price of gas
deliveries to a new planned petrochemical complex, a source close to the project
told Platts Tuesday.
"I think they will agree on the price within a month,"
the source said.
As soon as the price is agreed, the final decision on the
construction of the petrochemical complex will be taken, he said.
The parties are negotiating deliveries of some 7 billion cu
m/year of gas from Tengiz, he said.
KazMunaiGaz
together with private Kazakhstan's company SAT, which is operator of the
petrochemical project, plans to build the facility with
throughput ethylene capacity of 1.2 million
mt/year.
The unit is to produce 800,000 mt/year of polyethylene,
and 400,000 mt/year of polypropylene.
The construction of the $5 billion project is expected to start
in 2009, with the commissioning planned for late 2012.
During the first stage of the project gas from Tengiz will be the
only source of feedstock for the petrochemical unit. At the
second stage, the expansion is possible taking into account
future deliveries from Kashagan, another huge field in
Kazakhstan. The start-up of production at the Kashagan field,
operated by Italy's Eni, has been repeatedly delayed and is now
expected after 2012.
LOOKS FOR FOREIGN PARTNER
Kazakhstan
Petrochemical Industries, a 50:50 joint venture between
KazMunaiGaz and SAT, operating
the petrochemical project, is currently negotiating with major
foreign companies over their possible participation in the
project, the source said.
"They are looking for a strategic investor which will bring
into the project its own technology, access to market, and
finance," he said.
He mentioned Basell and Dow Chemical and "some Chinese
companies" among the firms with whom the talks are under
way.
Currently KPI plans to invest 30% of its own funds in the project
with the remaining 70% to come from other sources.
---
September 26, 2007 Posted
by SRI
Kazakhstan Seeks A
Foreign Partner for a Five-Billion-Dollar Petrochemical Project
By the end of 2007, KazMunaiGas and SAT & Company hope to
find a partner to build a new petrochemical complex in
Kazakhstan. The speaker of the Kazakh national oil company
announced that KazMunaiGas is currently conducting talks with a
number of foreign companies, including Netherlands-based Basell,
US-based Dow Chemical, and also several Chinese and Japanese
companies. The plant would annually produce 1.2 million tons of ethylene,
polyethylene and polypropylene and would process gas from the Tengiz oil field, led by U.S. Chevron, in its first stage. It would
later also process gas from the Kashagan field, led by Italyfs Eni.
Currently, KazMunaiGas is conducting negotiations with
Tengizchevroil, the operator of the Tengiz field, about the price
of the crude that will be used in the new complex. These
negotiations should be concluded within a month when KazMunaiGas - along with SAT & Company - will announce its foreign
partner. The new foreign partner will receive an equity stake in
the $5 billion project although it is not yet clear which of the
current partners will cede its stake.
The construction of the project is set to begin in 2008 and
finish in 2012, and it appears likely that its capacity will be
expanded to accommodate crude from Kashagan. The construction of
this complex is part of Kazakhstanfs drive to take ownership of and
develop its domestic petrochemical industry.
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Jan 8, 2008 WAM Abu Dhabi
IPIC signs a MoU with KazMunayGas
International Petroleum Investment Company (IPIC) and JSC NC
" KazMunayGas", Kazakhstan's national oil-and-gas
company signed a Memorandum of Understanding for cooperation in
construction of a petrochemical complex in Western Kazakhstan.
KazMunayGas JSC NC is the biggest oil-and-gas company in
Kazakhstan and a major player in the field of discovery and
production of oil and natural gas.
A source at IPIC said that a feasibility study on the project is
underway, and the details will be announced later. He added that
the two companies have agreed to exchange expertise and
technology to boost the project. Both companies IPIC and
KazMunayGas would assert their intention to develop and tighten
the relationship and cooperation between them.
The total worldwide investments of IPIC, the Abu Dhabi state
enterprise responsible for foreign investments in the oil and
chemicals sector, is valued at USD 11b.
Earlier last year IPIC had announced that it will increase its
investments to USD 20b dollars in the next 5 years to promote Abu
Dhabi as a strategic investor in oil and energy industry in the
world.
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