Kazakhstan: Joint Venture Tatneft, KazMunayGas to Develop 1 Billion Dollar Plant for Butadiene Rubber Production
Tatneft and KazMunayGas have entered into a joint venture to set up a new production site in the Atyrau region of Kazakhstan. The new facility, estimated to cost about 1 billion dollars, will produce up to 180 thousand tons of butadiene and butadiene rubbers annually.
Tatarstan/Russian Federation – The companies have signed a corporate agreement on the operation of the Butadien joint venture for the project implementation of butadiene rubbers production. The document has been signed by Nail Maganov, General Director of Tatneft, and Alik Aidarbayev, Management Board Chairman of KazMunayGas.
According to their plans, production will be launched in 2026 at the territory of the SEZ ‘National Industrial Petrochemical Technopark’ (Free Economic Zone) in the Atyrau region of the Republic of Kazakhstan. There will be about 2,000 jobs created at the site of the new production facility at the construction period stage, and more than 700 job positions at the stage of the facility’s operation.
The planned capacity of the enterprise will reach up to 180 thousand tons of butadiene and butadiene rubbers per year. The shares of KazMunayGas and Tatneft in the project will amount to 25 percent and 75 percent, respectively. The preliminary cost of the project is estimated at about 1 billion dollars, and the parties are considering options for financing the project, including through borrowed funds.
It is assumed that raw materials will be supplied from the Tengiz and Korolev fields in Kazakhstan. The plans provide for finished products to be sent to a tyre manufacturing factory in the Karaganda region, as well as for export to European countries, Russia, China, Turkey, etc.