November 21, 2008
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KMG and IPIC to Cooperate in Gas Chemical Project in West Kazakhstan

National Company KazMunaiGas (KMG) and Arabian International Petroleum Investment Company (IPIC) signed a Memorandum of Understanding in which they agreed on future participation of IPIC in the first integrated gas chemical facility project in a small town of Karabatan in Atyrau region.

In the event of IPIC’s involvement in the project, the parties will share best practices and applied technologies. Both companies confirmed their intent to develop and further strengthen mutually beneficial cooperation. Kazakh company Kazakhstan Petrochemical Industries, with 50% KMG’s share through its subsidiary KMG E&P, will be responsible for the first gas processing facility project implementation.

The project provides for the complex’s capacity of 800,000 tons of polyethylene and 400,000 tons of polypropylene per year. Investment value of the project totals $5.3 bn. The project is scheduled to be completed by 2013.

The first integrated gas processing facility project will be implemented in compliance with the National petrochemical industry development programme.

A free economic area called National industrial petrochemical technical park is planned to be established at the facility construction site to raise investments in construction and full-fledged development of petrochemical production facilities for hydrocarbon deeper conversion.

IPIC is an Abu Dhabi state enterprise established in 1984 and responsible for all foreign investments in the petrochemicals sector. Total volume of IPIC investments will approach $11 bn, with IPIC planning to increase its investment portfolio to $20 bn over the next 5 years.

Source: KazMunaiGas



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