Kazakhstan Starts Construction Of 420-Km Ethane, Propane Pipeline Network
The project,“Construction of trunk pipelines (ethane, propane) in a single corridor in the Atyrau region,” is being implemented by KMG PetroChem LLP, a subsidiary of KazMunayGas.
The pipelines will ensure reliable, safe and uninterrupted transportation of liquefied ethane and propane from the gas separation complex at the Tengiz field to gas chemical plants producing polyethylene and polypropylene in the Karabatan special economic zone, the National Industrial Petrochemical Technopark (NIPT). Together, these facilities will form the basis for deep processing of hydrocarbons and production of high value-added products.
These will be the first ethane and propane trunk pipelines in Kazakhstan. Each will be about 210 kilometers long. The ethane pipeline will have a capacity of 1.6 million tons per year, and the propane pipeline 1.1 million tons per year.
Earlier, Kazakhstan approved the first technical regulation in the CIS for trunk ethane and propane pipelines, developed with the project's specifics in mind.
During the project, special attention will be paid to increasing the share of Kazakh content by engaging domestic suppliers of equipment and materials, contractors and service companies, as well as qualified personnel. This will open additional opportunities for local business and production cooperation.
Production of pipes for the propane pipeline has already begun. The project provides for seamless carbon and alloy steel pipes that meet requirements for operation at low temperatures.
To ensure safety, line valve units with automated shut-off valves are planned every 5–10 kilometers, along with a leak detection system and gas analyzers.
The project is also expected to have a significant socio-economic effect. Up to 1,300 jobs are planned at the peak of construction, with priority given to residents of the Atyrau region. This is stipulated by a trilateral memorandum of cooperation signed by the Atyrau Region Department of Employment Coordination and Social Programs, KMG PetroChem LLP and the contractor, CPPE (Kazakhstan) LLP. About 170 permanent jobs will be created during the operation of the pipelines.
The facilities are scheduled to be commissioned by the end of 2028. The new infrastructure will form the basis for stable operation of petrochemical and gas chemical plants and further development of the industry as a whole.
KMG PetroChem LLP is implementing the project in partnership with an international consortium led by China Petroleum Pipeline Engineering Co., Ltd., with the participation of CITIC Construction Co., Ltd. and CPPE (Kazakhstan) LLP.
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