Tuesday, 02 January 2024 12:17 GMT

Kazmunaygas Begins Piling Works For Gas Separation Complex In Its Atyrau Region


(MENAFN- Trend News Agency) ASTANA, Kazakhstan, November 19. The first piles for Kazakhstan's new Gas Separation Complex (GSC) have been driven at the Tengiz field in the Atyrau region, Trend reports via KazMunayGas (KMG).

The facility, built to handle a whopping 9.1 billion cubic meters of dry gas each year, is seen as a significant stepping stone in the growth of the nation's petrochemical sector. According to KMG, a total of about 22,000 piles will be installed, all sourced from domestic manufacturers.

Production is scheduled to start at the end of 2028, with commissioning planned for 2029.

The project will supply up to 1.6 million tons of ethane per year to the future Silleno polyethylene plant while also producing up to 360,000 tons of propane. These products will be extracted from dry, treated gas delivered by the Tengizchevroil company.

KMG noted that the GSC will create a stable feedstock base and support the production of high value-added goods, in line with state priorities to expand Kazakhstan's petrochemical cluster and non-resource exports.

The company put its nose to the grindstone, making it a top priority to ramp up local content by bringing Kazakh producers, service companies, and skilled labor into the fold. The project will use large volumes of domestic materials, including around 1.19 million m3 of inert materials and more than 27,000 tons of metal structures, and place orders with local manufacturers for major electrical and heavy equipment, such as modular substations, transformers, a 220 kV switchyard, propane storage bullets, and technological columns.

The project is also expected to have significant socio-economic impact. At peak construction, up to 3,500 temporary jobs will be created for residents of the Atyrau and Mangystau regions, with about 400 permanent positions once operations begin.

The complex will be based on technology from the U.S.-based Honeywell UOP. The project is being implemented by KMG PetroChem, a subsidiary of KazMunayGas, together with an international consortium led by Italy's Tecnimont (Maire Group), which includes Consolidated Contractors International Company (CCIC).

The Tengiz field is a substantial supergiant oil and gas reservoir located in western Kazakhstan, discovered in 1979, and recognized for its intricate geology and elevated sulfur concentration. This field is among the deepest producing fields globally and is managed by the joint venture Tengizchevroil (TCO), including Chevron (50 percent), ExxonMobil Kazakhstan Ventures Inc. (25 percent), KazMunayGas (20 percent), and LUKOIL (5 percent). The sector has had multiple expansions to enhance its manufacturing capacity and prolong its longevity.

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