KPI selects Sinopec Engineering for PDH and PP units
The national company Kazakhstan Petrochemical Industry Inc Ltd (KPI) selected Sinopec Engineering Group (SEG) for the engineering, procurement, construction, and commissioning (EPCC) of the propane de-hydrogenation (PDH) and the polypropylene plants.
– United Chemical Company LLP (51%)
– SAT & Company JSC (49%)
SAT & Company is active in the steel industry.
The project is planning to take advantage in a first stage from the natural gas liquids (NGL) such as propane to manufacture polypropylene, and in a second stage from the ethane to produce ethylene and following polyolefins.
At the end the Atyrau petrochemical complex should include:
– Ethane cracker
– Ethylene Dimerization
– PDH facility
– Polypropylene unit
– Polyolefins units
– Offsites and Utilities
– Power plant
– Transportation infrastructures such as railway station, gas pipelines, monomer pipelines and highways
To be located in the north of the Karabatan region, KPI selected a site 33 kilometers northeast of the Atyrau City because of existing infrastructures.
In March 2009, KPI signed a contract with Tengizechevroil, the joint venture between Chevron, KazMunaiGas, ExxonMobil and LukArco, for the supply of six to seven billion cubic meters of gas to its Atyrau Petrochemical complex.
KPI selected LG Chem for ethylene and polyethylene
In addition to this license agreement, CB&I Lummus provided the basic engineering for these two units.
For the conversion of the propane into polypropylene, KPI will use the CATOFIN technology.
SEG is the new engineering entity of the Chinese national oil company (NOC) Sinopec where all its engineering activities previously associated to the so called Chinese Institutes are concentrated and re-organized.
– 500,000 t/y of propane de-hydrogenation (PDH)
– 500,000 t/y of polypropylene (PP)
This first stage of the Atyrau Petrochemical Project will require KPI to invest $1.85 billion capital expenditure.
The second stage of the project should have the production capacities:
– 1 million t/y of ethylene
– 400,000 t/y of low density polyethylene (LDPE)
– 400,000 t/y of linear low density polyethylene (LLDPE) and high density polyethylene (HDPE)
For this second stage, KPI selected LyondellPasell technologies.
LyondellPasell was originally involved in the project with some shares but in 2010, it decided to withdraw from the project.
The first stage awarded to Sinopec Engineering Group (SEG) should take 3 years for completion, while KPI expects LG Chem to deliver the second stage of the Atyrau Petrochemical Project two years later.