Kazakhs Talks With Hanwha, Marubeni to Build Gas Chemicals Plant
Mar 15. Bloomberg
By Nariman Gizitdinov
Kazakhstan is in talks with South Korea’s Hanwha Chemical Corp., Japan’s Marubeni Corp. (8002) and the investment arm of the Abu Dhabi government as it seeks financing for a 645 billion tenge ($4.4 billion) polyethylene plant.
The Caspian Sea state is also negotiating with China Petroleum & Chemical Corp. (600028), the Hong Kong-listed company known as Sinopec, and with LG Chem Ltd., South Korea’s biggest chemicals maker, which it seeks as a partner on a “parity basis,” according to the Oil & Gas Ministry’s plan published today in Kazakhstanskaya Pravda, the official newspaper.
Sinopec last March won a contract to build a 300 billion- tenge polypropylene plant in western Kazakhstan. The polypropylene plant will form part of a gas chemicals complex, which will be able to produce 500,000 metric tons of polypropylene a year and 800,000 tons of polyethylene, the main chemical in plastics, once it reaches full capacity in 2015, the ministry said.
Sinopec agreed to buy and export all the polypropylene produced at the facility, Kazakh Deputy Oil and Gas Minister Aset Magauov said in March last year. The Export-Import Bank of China will provide a $1.26 billion loan for the project, he said.