China-based Sinopec has entered an equity agreement with KazMunayGas JSC (KMG) for a 30% stake in a polyethylene project in Kazakhstan, according to a statement issued by Sinopec.
The project is situated at Atryau in Western Kazakhstan. And has a design of annual capacity of 1.25mn tons each year, according to a statement.
Earlier, the two companies had agreed on the primary terms in the month of May 2023.
The project’s total cost is reportedly USD7.7bn.
The company plans to start the plant’s construction in H224, as per Kazinform.
The announcement came when Kazakh’s President Kassym-Jomart Tokayev visited Beijing and met President Xi of China. They discussed increasing cooperation in trade and investment at the Belt and Road Forum.
Also according to a Sinopec statement, both the companies have also signed a pre-feasibility joint development agreement in order to study the possibility of investing in Phthalic acid and polyethylene terephthalate plants at Kazakhstan.
