KMG and Tatneft signed an Agreement for basic cooperation conditions under the Butadiene project

On 5 April, in Saran, Karaganda Region, an Agreement was signed for basic cooperation conditions under the Butadiene project to be implemented by JSC NC “KazMunayGas” (KMG) and PJSC Tatneft (Tatneft). The Agreement was signed as part of the official cornerstone laying ceremony for the future tyre-manufacturing facility. The ceremony was attended by Askar Mamin, Prime Minister of the Republic of Kazakhstan, Rustam Minnikhanov, President of the Republic of Tatarstan, Alik Aidarbayev, Chairman of the KMG Management Board, Nayil Maganov, General Director of Tatneft.

The butadiene rubber project in Atyrau Region is scheduled to be implemented by 2025. The capacity will be 186 thousand tonnes of butadiene rubbers and 170 thousand tonnes of iso-butane. The facility will use butane of Tengizchevroil LLP as the feed. The finished products will be supplied to a tyre works in Karaganda Region, and exported to Europe, Russia, China, Turkey, etc.

Implementation of this initiative will help create about 2,000 jobs during construction and 400 jobs during operation of the facility.

“Tatneft is one of the key partners of National Company “KazMunayGas”. We are actively cooperating in various fields — from supplies of goods and equipment to management of oil recovery improvement in mature fields. And I am pleased to note that our joint efforts have started to bring fruit. Today, we have signed an agreement for basic cooperation conditions under the butadiene and rubber project. It is, without a doubt, another important step towards development of the national oil and gas sector, and yet another confirmation that our cooperation is unshakeable,” noted Mr. Aidarbayev.

“Our colleagues from KazMunayGas and Tatneft are long-time business partners. After a short COVID-caused break, the negotiations of joint projects are now active again. The new joint butadiene project is closely related to construction of a Tyre Complex in Saran. We will supply local feed for Kazakhstan’s tyre production and make our contribution to Eurasian Economical Partnership between our countries,” emphasised Mr. Maganov.

As a reminder, in July 2019, KMG and Tatneft signed a Memorandum of Understanding, which defined the expected areas of cooperation. In November 2019, the companies signed a Roadmap to introduce best practices of PJSC Tatneft in the oil and gas sector of the Republic of Kazakhstan. In November 2020, KMG and Tatneft signed an Action Plan to cooperate and study economic feasibility of the butadiene rubber project.

For reference:

Styrene-butadiene-styrene (SBS) is used to modify bitumen in production of adhesives, glues and rubbers.

Butadiene-styrene synthetic rubber (BSSR) is used to produce highly wear-resistant and frost-resistant tyres with high dynamic endurance.