Basell signs memorandum of understanding with KazMunayGaz and SAT for first integrated worldscale petrochemical complex in Western Kazakhstan
March 31, 2006 – Following a meeting with Daniyal Kenzhetayevich Akhmetov, Kazakhstan’s Prime Minister, Basell has signed a memorandum of understanding (MOU) with KazMunayGaz Exploration & Production (KMG EP) and SAT & Company (SAT) confirming their intention to construct and operate a new petrochemical project in Kazakhstan.
The project is expected to include an ethane extraction unit in Kulsary and an integrated petrochemical complex in Atyrau. The planned petrochemical complex includes a worldscale ethane cracker and polyethylene facilities, as well as a propane dehydrogenation unit and polypropylene facility. Start up is planned for 2010.
“The signing of this MOU highlights the rapid progress achieved and marks a key milestone in the preparation of this important project,” said Volker Trautz, CEO of Basell, who participated in the recent meeting with the Prime Minister. “When operational in 2010, this facility will establish a new benchmark for the polyolefins industry. The polypropylene and polyethylene units will use Basell’s latest generation process technologies, so manufacturing costs will be among the lowest in the industry, while benefiting from a broad product capability.”
Trautz added, “They will also benefit from advantaged feedstocks, since they will be integrated with local gas supplies. As the leading polyolefins supplier worldwide and the largest polyethylene producer in Europe, Basell will provide sales and marketing support for the project.”
In addition to providing technology and sales and marketing services, Basell intends to participate directly as a shareholder in the project.
KazMunayGas (KMG) was founded in 2002 as a result of the merger of CJSC National Oil Company Kazakhoil and NC Oil and Gas Transportation. This state owned company was created with the goal of developing Kazakhstan’s oil and gas resources. KMG EP is the operating subsidiary responsible for exploration and distribution of oil and gas. KMG is also a shareholder in TengizChevrOil (TCO) and Agip KCO.
SAT is a privately owned, diversified conglomerate with industrial, commercial and service activities.
Basell is the world's largest producer of polypropylene and advanced polyolefin products, a leading supplier of polyethylene and catalysts, and a global leader in the development and licensing of polypropylene and polyethylene processes. Basell, together with its joint ventures, has manufacturing facilities around the world and sells products in more than 120 countries. Additional information about Basell is available at www.basell.com.
For more information contact:
Chantal Sohm, Basell Corporate Communications, at +33 1 555 12 119 or chantal.sohm@basell.com
