Press Releases

19.07.2019

Prime Minister of the RoK Askar Mamin familiarizes himself with the progress of the Integrated Gas-based Petrochemical Complex (Phase I – Polypropylene Production) construction in the Atyrau Province.

On 17 July 2019, as part of the working visit, Kazakhstan's Prime Minister Askar Mamin, together with the Akim of the Atyrau Province Nurlan Nogayev, Chairman of the Management Board of Samruk-Kazyna SWF JSC Akhmetzhan Yessimov and Chairman of the Management Board of JSC NC “KazMunayGas” Alik Aidarbayev, familiarized himself with the progress of construction of the Integrated Gas-based Petrochemical Complex (Phase I – Polypropylene Production) in the Atyrau Province.

The delegation examined in detailed the construction sites of the complex, located on the territory of the “National Industrial Petrochemical Park” special economic zone.

The IGPC (Phase I – Polypropylene Production) includes construction of the process units of propane dehydration (PDH), propylene polymerization (PP), using the licensed technology of Lummus Technology, a global leader in polymer production, and 32 large infrastructure facilities. The purpose of the production is reaching the capacity of 500 thousand tons of polypropylene annually.

Since the project was handed over to the management of JSC NC “KazMunayGas” in June 2018, the project entered the active implementation phase – the dynamics has improved, the construction schedule has been optimized, professionals, having the experience of participation in major projects in the Republic of Kazakhstan, have been mobilized.

In the report of Daniyar Tiyessov, Deputy Chairman of Management Board for Refining and Marketing – Chairman of Kazakhstan Petrochemical Industries LLP's Management Board, he noted that works are underway at the sites for construction of PDH propane dehydration units, PP propylene polymerization units and off-plot facilities. 36 subcontractor companies, including 33 Kazakh companies, have been involved in the construction. Currently 1, 512 people are involved in the project, including 193 of foreign workforce, 112 of them are engineers and other technical workers. Construction of a field office for the General Contractor and subcontractors, the Customer's temporary office and a camp for 2,960 people, 3 cafeterias, a boiler house, and a medical office has been completed. Steel structure and pipe nodes assembly and coating shops have been raised. Total project progress is 35%. Progress in terms of engineering is 58%. The refinery general layout has been developed and approved. 3,489 drawings have been issued for performance of works, the 3D model is 60% ready. Consideration of the 90% readiness of the 3D model has been initiated.

Progress in terms of equipment procurement is 40%: placement or orders for long-lead items has been already completed - 123 equipment items. The majority of orders were placed in Europe. The order for the biggest column - propane and propylene splitter - was placed with the AtyrauNefteMash plant. Today this is the biggest equipment manufacture in Kazakhstan, - there is no comparable equipment even in the refineries. Progress in terms of placement of orders for primary equipment is 91%, placement of orders for auxiliary equipment is underway. The plans are to complete placement of orders for all items of both primary, and auxiliary equipment in 2019. To render logistic services, a Kazakh company has been engaged, which has experience of delivering large-size equipment for the Kashagan and Tengiz Projects. Temporary storage warehouse has been prepared at the construction site, which will receive equipment and materials, awaiting customs clearance.

Progress in terms of construction and assembly works is about 22%. Installation of 18,186 driving piles completed (100%); installation of auger piles completed, 347 pieces installed (100%); concrete work is underway, 57,986 of 68,880 m³ completed (84%). As of today, all 89 titles are covered by construction works. Zero-level works have been completed; installation of above-ground constructions has been started.

Furthermore, transportation infrastructure (TI) is being constructed within the framework of the project. Total length of railway lines is 11.6 km, motorways - 4 km. Earthwork operations and construction of railway tracks are underway.