Main projects of petrochemical

industry development of

Kazakhstan.

Sarmurzina R.G. Doctor of Chemical Science, professor.

Austria, Vienna, November 2016

• The report based on the following data:

• Ministry of Energy of the Republic of Kazakstan

• «Kazakhstan Petrochemical Industries Inc.» LLP

Main projects of petrochemical

industry development of

Kazakhstan.

Karabatan area

Atyrau city

Techopark

IGCC

evaporation pond

ГСУ

Feed gas pipeline

Tengizarea

GOPP Tengiz

Aromatics

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14

5

Rotational village

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15

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6

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3 11

2

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Land plots for infrastructure facilities

1 - railway station of IGCC railway and

overbridge 120,5 Га

2 - approach automotive road 17,8 Га

3 – water pipeline 89,6 Га

4 – fuel gas pipeline 28,3 Га

5 - evaporation pond of IGCC 375,0 Га

6 - Rotational village of IGCC 4 Га

7 – Infrastructures of temporary

rotational village (74 ha) - Га

8 – Gas turbine power station 10 Га

9 – Water treatment facilities 24 Га

10 – air/nitrogen plant 6 Га

11 – power lines 52,9 Га

12 – logistics facilities 3 Га

Total 731.1 Га

Land plots for Petrochemical facilities

13- IGCC plant site (KPI, KLPE,

Butadiene, Polymer production)423,7 Га

14 - aromatics plant 336,2 Га

15 – feed gas pipeline (ethane, propane) 1599,5 Га

16 - petrochemical technology park

behind territory of the Atyrau refinery 285 Га

17 - gas-absorption plant (GAP) 100 Га

Total 2744,4 Га

Total area 3475,5 Га

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10

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Location plan

The territory of SEZ is located 47 km far from Atyrau.The constructed infrastructure facilities are:Approach automotive road to SEZ – 5,26 km. Access railway road of the Karabatan St. – Zavodskaya St. - 8,8 km.Railway yard of the Karabatan St. of total length – 6,89 km. Extension of the station Karabatan of total length – 6,65 km. Gas pipeline from Makat-North Caucasus main gas pipeline to SEZ – 8 km.

3 476 hectares which consists of 3

sections: Karabatan, Tengiz

Atyrau

Total area of SEZ “NIPT”

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Number of shareholders of

SEZ "NIPT"

SEZ "National Industrial Petrochemical Technology Park"

CIT – 0%

Land tax – 0%

Property tax – 0%

VAT – 0%

Benefits

SEZ “NIPTP

STATE SUPPORT MEASURES

MEASURES PREFERENCES (BENEFITS)

The decree of the President of the

Republic of Kazakhstan dated

December 19, 2007 No. 495 Special

economic zone "National Industrial

Petrochemical Technology Park" is created

Participants are exempted from

taxes and the customs duties (0%)

Investment warranties are provided

Conclusion of the investment

contract providing measures of

the state support and protection

of investments

Construction of infrastructure by the

stateReady infrastructure

The projects are provided by

feedstock

The feedstock support issue is

resolved for a long-term outlook

with a possibility of extension

Атырау

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Applicant: KPI LLP.

Shareholders: "UCC" LLP - 51% (JSC "Samruk-Kazyna"),

"ALMEKS PLUS" LLP - 49%.

Completion date: 2020.

Cost: $2 500 million.

Creation of work places: construction – 2945 people; operation –

550 persons.

Production capacity: 500 thous. tons/year of polypropylene.

CURRENT STATUS

The feed stack support issue is resolved in volume - 550 thousand tons/year of propane.

The state allocated funds for construction of infrastructure.

On December 14, 2015 between "KPI" LLP and China National Chemical Engineering Co. (CNCEC)

is signed EPC contract.

the CNCEC company opened the branch in Atyrau, on August 9, 2016 obtained the state licenses

for design and installation and construction works of the 1st category for construction of facilities

in the territory of RoK of high complexity.

On June 3, 2016 on the feasibility study project the positive decision from "State Expertize" RSE

is received.

On September 3, 2016 operator of the project ("KPI" LLP) signed General credit agreement with China National Development bank.

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Flow Diagram

Tengiz

TCO

PowerNatural gas

Waste water

GTPPWater purification and treatment unit

TCO (Tengizchevroil) Process units of IGCC (phase 1)

Propane Propane Dehydration unit

Polymerization unitPropylene PolypropyleneLogistics

Raw waterNatural gas

Indst. water

Demin.water

503 thous. t/year

500 thous. t/year

Demin. Indust. water

Industrial gas unit

Nitrogen

Industrial air

Instrument air

Infrastructure facilities

Steam

Propane Dehydration Unit CATOFIN®Process flow diagram

Treatment

reactor

Reactor at

flow

Feed

heating

Reactor at

reheating

Reactor at

reheatingSteam

Heat

exchanger

Chiller

Chiller

Product

compressor

Flue gas

Air heater

Air

Fuel

Fuel gas

Propylene

Stabilization

column

Low

temperature

section

Deethanizer

Vaporizer

Propane to recycle

Propylene polymerization unit Novolen®

Process lines of propylene polymerization unit are intended for production: homopolymer of propylene (Homopolymer);statistical copolymer of propylene and ethylene (Random copolymer);impact-proof copolymer of propylene and ethylene (Impact copolymer). 7

Paralleling

operationCo-Catalyst

Stereo modifier

Catalyst

Carrier gas

to regeneration

Collection tank

Gaseous waste to membrane

filter cell

Treatment unit

Chilling

unit of

Recycle

gas

Recycle pump;

propylene

Comonomers

Hydrogen

Propylene

Comonomers;

hydrogen

Serial mode

1-st reactor 2-nd reactor

Chilling unit of recycle

gas

nitrogen

Powdered propylene

to extrusion

-(*) at paralleling operation

2-nd reactor operates like 1-st rector

Applicant: JSC «KLPE» LLP.

Shareholders: “UCC” LLP (JSC “Samruk Kazyna”)

Completion date: 2020

Cost (to be determined): $ 5 000,0 mln.

Creation of work places: construction – 2900 persons; operation – 490

persons.

Production capacity: 800 thous.t/year of polyethylene.

CURRENT STATUS

The issue of support with feed stock in volume - 6,3 billion cub/year dry gas is resolved.

The state allocated funds for construction of infrastructure.

Preliminary estimate calculation of the project is executed (OBE – Open Book Estimate).

Search of the strategic partner is carried.

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Integrated Gas Chemical Complex in Atyrau Province: Third Phase

PROJECT CONCEPT

Karachaganak

Kashagan

● Steam cracking● Polymers● Special Chemistry

LPG 850 thous. tons/year70% - propane30% - butane

Condensate 3 mln. tons/year75% - Naphtha (С5-С12)

EXPORT

Production of final products in the territory of the

Republic of Kazakhstan

Petrochemical Complex

Shareholder: “UCC” LLP (JSC «NWF Samruk-Kazyna»).

Completion date: approximately 2021 (depending on

attraction of investments).

Cost (TBD): $ 1 644 млн.

Production capacity: 250 Kilo-Metric Tonnes per Annum of

butadiene.

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CURRENT STATUS

Issue of providing with raw materials in volume – 380 thousand tons/year of butane is

resolved.

The state allocated funds for construction of infrastructure.

The feasibility study on the project is developed;

Search of the strategic partner is conducted.

Производство бутадиена в Атырауской области

Construction of infrastructure of SEZ "NIPT"

Implementation period: 2016-2018.

Work places: construction – 700 persons, operation – 200 persons.

Current status:

1. Ready infrastructure

Access railroad (15,6 km)

Railway Zavodskaya St.

Access road and overbridge (5,2km)

Power line (AL 110)

2. Facility under construction: 310 MW GTPP

EPC contract with Doosan (South Korea) is concluded.

The beginning of construction and erection works is planned

for October, 2016.

3. Schedulable construction:

Water treatment unit and industrial gases

Access railway

Zavodskaya St.

GTPP

Applicant: JSC "NC KazMunaiGas"

Operator: "Atyrau Refinery" LLP

General contractor: Sinopec Engineering

Start up operation: 2015.

Total cost of the project: $1 098 million.

Creation of work places: 177 people.

Complex's capacity: production of 133 thousand tons/year of

bensole, 496 thousand tons/year of paraxylol.

Researches on further processing of the received paraxylol in p-phthalic acid and further in

polyethylene terephthalate are conducted.

P-xilol PTA PETF

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The project on production of polymeric production in the Atyrau region"

Applicant: "Polimer Production" LLP

The project is realized: 2012 – 2015;

Cost: 16,8 billion tenges (91,2 million USA dollars at the rate of 185 tenges).

Created work places: construction – 300 persons, operation 371 persons.

Project implementation effect:

- a three-layer polyethylene film – 4 125 thousand tons/year;

- The BOPP-film – 14 738 thousand tons/year;

- Polypropylene bags with a capacity of 25 and 50 kg – 48 million pieces/year

Current status:

Sales market arrangement is carried.

As of October 1 of the current year it is received:

- polypropylene bags (Starlinger, Austria) – 4 390 954 pieces;

- a three-layer polyethylene film (Kuhne, Germany) – 422 tons;

- BOPP-film (Andritz) – 603 tons.

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Aromatics

Production Complex

at Atyrau Refinery

plant

“Polypropylene”

project

“Butadiene”

project

2019

2015

Developed Projects

“Polyethylene”

project

2020

15

Projects under development

Modernization of

polypropylene

production in

Pavlodar

CONCLUSIONS

• Implementation of the listed projects will contribute the complex and accelerated development of petrochemical and chemical industry of the Republic of Kazakhstan

• will create a domestic basis of feed stock resources and operating technologies, productions on deep cleaning and processing of hydrocarbon and mineral feed stocks with production by chain of value added according to world achievements

• will create a basis for formation and development in the Republic of Kazakhstan of the vertically integrated complexes which activities can be carried out from cleaning of oil, gas before creation of operating technologies and productions on deep complex processing of hydrocarbon and mineral feed stock

• will allow to develop production infrastructure of domestic petrochemical sector, to create the full market of petrochemical products

• will reduce dependence of economy of Kazakhstan on an environment of the world prices for oil and gas

• will provide filling of domestic market with petrochemical products of domestic production.

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THANK YOU FOR YOUR ATTENTION!

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