Magzum Mirzagaliyev, Chairman of the Management Board of JSC NC “KazMunayGas” recently met with Venka Chandrashekar, Vice President for Technology and New Developments, Chevron Phillips Chemical. The parties signed a license agreement and a design agreement for implementation of “Construction of integrated gas chemical complex in Atyrau Region, Phase II (polyethylene)” project during the meeting.

The agreement provides for development of design documentation for a polyethylene production unit using MarTECH ADL technology, and provision of a corresponding license for production of 625 thousand tonnes of polyethylene per year.

Chevron Phillips Chemical’s technology will enable production of a wide range of products at the future Kazakh plant, including premium high-density polyethylene that is projected to maintain a long-term growth in global demand.

The second polymerisation unit, with capacity of 625 thousand tonnes of polyethylene per year, is at the stage of final negotiations with another licensor. Signing of an agreement is expected before mid-December this year.

Two process units will be combined into a single complex with a total capacity of 1 million 250 thousand tonnes. The choice of two leading licensors will ensure output of a wide range of basic and premium brands, the greatest production flexibility and competitiveness.

“We highly appreciate our partnership with Chevron Phillips Chemical. I am very pleased that we have reached an agreement on the polyethylene production project with Chevron Phillips Chemical regarding the most optimal configuration of the polyethylene production process. As part of this work, CPChem proposed a process for production including output of premium grades of polyethylene with characteristics meeting the current and future market trends,” noted M. Mirzagaliyev during the meeting.

After signing the License Agreement and the Design Agreement, the parties begin to develop the basic design.

“Today we have received the first results of fruitful work of our teams that prepared the License Agreement and the Design Agreement. By signing them, we are at the origins of implementing the large-scale Polyethylene project in the Republic of Kazakhstan,” added the Chairman of KMG’s Management Board.

The event also included discussions of further expansion of bilateral cooperation with U.S. partners in the petrochemical sector.