The China Petroleum and Chemical Corporation (SINOPEC) officially became a participant in the Polyethylene project worth about $7.7 billion, Report informs referring to the government of Kazakhstan.

“Prime Minister of Kazakhstan Olzhas Bektenov has met with President of SINOPEC, Zhao Dong, and Chairman of the Board of SIBUR LLC, Mikhail Karisalov. During the meeting, a tripartite protocol was signed, officially completing the entry of SINOPEC into the participants in the construction project of the first integrated gas chemical complex in Kazakhstan for the production of polyethylene at a cost of about $7.7 billion,” reads the message.

The enterprise’s capacity will be 1.25 million tons of polyethylene per year, which is 1% of all global capacity. With the signing of the protocol, the structure of the plant’s owners is as follows: KazMunayGas – 40%, SINOPEC – 30%, SIBUR – 30%.

The project is being implemented with the support of the government of Kazakhstan. The plant will be built on the territory of a special economic zone with appropriate infrastructure and a special tax regime. In addition to the Polyethylene plant, it is planned to build a gas separation complex and a main pipeline.

The plant plans to produce about 22 grades of polyethylene using US licensed technologies from Chevron Phillips and Univation, of which 40% will be premium class.

“The added value between the feedstock – ethane and the third stage product – polyethylene will grow 20 times, from 80-90 to $1,600-1,800 per ton. The Polyethylene project will certainly give a serious impetus to the development of both the manufacturing industry and the country’s economy as a whole. According to experts, the contribution to the country’s GDP by 2030 from the implementation of the project is estimated at approximately 1.2%,” Bektenov noted.