Kazakhstan choosing investor for gas chemical works

Within 2 months’ time Kazakhstan plans to choose a partner for construction of the 2nd stage of the integrated chemical works in Atyrau oblast, Mr. Asset Magauov, Vice Minister of Oil and Gas, said March 24, Novosti Kazakhstan reports. The Government is considering two possible partners - LG Chem Ltd. of South Korea and International Petroleum Investment Co. of the UAE, he said on the sidelines of the KazRefineEx 2011 international symposium in Almaty. According to Mr. Magauov, LG Chem is ready to attract $ 2.7 billion from financial institutions of South Korea to finance the project worth $ 4 billion. The other 1.3 billion could be invested by shareholders of the project. According to the Vice Minister, IPIC has yet to present its investments plan. The 1st stage of the project is to produce 500 000 tons of polypropylene a year, with the production capacities expanded to 800 000 tons upon completion of the 2nd stage. The project operator is Kazakhstan Petrochemical Industries. Construction of infrastructure and production units of the 1st stage of the project is financed by a loan of $1.3 billion provided by Exim bank of China. Turn-key contract for the 1st stage was signed with Sinopec Engineering of China.