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Production of Butadiene and its Derivatives

Production of Butadiene and its Derivatives
Terms of implementation
2021-2026 годы
PJSC Tatneft (75%), JSC NC “KazMunayGas” (25%)
Current status
The key issue relating to the Butadiene project has been resolved - a draft contract for raw materials between KMG, TCO, Tatneft, and Butadiene LLP has been endorsed. The raw materials agreement also received approval from TCO shareholders: Chevron, Lukoil, KMG, and is expected to be approved by Exxon. The issuance of a resolution of the Government of the Republic of Kazakhstan on raw materials is being worked on, it has been endorsed by the Ministry of Energy, the Ministry of Finance, the Ministry of National Economy, Ministry of Industry and Infrastructure Development, and the Akimat of Atyrau Region. It is under consideration of the Ministry of Justice and the Ministry of Ecology. Given the settlement of the issue with raw materials, the Butadiene Project is in active phase of realization in particular: the organizational structure and budget of Butadiene LLP for early work have been approved; the engineering survey on the project site is underway; the work with technology licensors regarding obtaining the TCP and subsequent conclusion of contracts has started; amendments are added to the Joint Operating Agreement between KMG and Tatneft in connection with a change in the configuration of the Project. Negotiations involve the world’s leading technology licensors such as Lummus, Versalis (Eni), and ETIC.
Key indicators
  • 83
    rubber, thousand tons annually
  • 130
    isobutane, thousand tons annually
  • 964
    investments, million USD
  • 777
    new jobs during the construction period
  • 2200
    new jobs during operation
Butadiene LLP is the operator of the investment project «Production of butadiene and its derivatives».

Project is being implemented to produce synthetic rubbers and isobutane using the available gas resources from the Tengiz field as a feedstock for subsequent marketing of products in the domestic and export markets.

The project configuration involves the construction of plants for processing of Tengizchevroil LLP’s butane mixture and its separation into isobutane and n-butane, used to produce synthetic rubbers and other petrochemical products:

   - styrene-butadiene-styrene - up to 38 thousand tons annually;

   - divinyl-styrene-synthetic rubber - up to 45 thousand tons annually;

   - isobutane-isobutylene fraction - up to 130 thousand tons annually;
   - methyl tert-butyl ether - up to 57 thousand tons annually;
   - butadiene - up to 66 thousand tons annually.

The project feedstock is a mixture of butanes to be supplied from the Tengiz field in the amount of 380 thousand tons annually.

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