Development Bank of Kazakhstan may finance construction of a gas separation unit for Polyethylene ProjectThe construction of a gas separation unit for the Polyethylene Project could be financed by Development Bank of Kazakhstan (DBK), said KazMunayGas (KMG) CEO Askhat Khassenov."KMG’s largest project is the polyethylene plant. (...) This project will also involve two infrastructure projects: the construction of a gas separation unit and main pipelines. The decision on the financing of the gas separation project is yet to be made. We are discussing terms and conditions with Development Bank of Kazakhstan," Khassenov said at a Monday meeting of the government.He added that the total cost of all projects is estimated at around $11 billion, representing direct investment from KMG and its partners.In early July 2024, within the framework of the 7th meeting of the Kazakh-Chinese Business Council, which was held on the eve of the summit of the Shanghai Cooperation Organization, KMG, SIBUR and Sinopec signed a protocol on the polyethylene project, confirming their intention to reach agreement on the final investment budget and to ensure a highest possible level of Kazakhstani content in the design work and procurement of equipment and materials.By mid-July 2024, the polyethylene project had reached the final stage of the Front-End Engineering Design (FEED) phase.The project's ownership is divided as follows: KazMunayGas - 40%, SIBUR - 30%, and Sinopec - 30%. The estimated cost of the project is $7.7 billion, the financing is expected to be provided by the stakeholders and to come from funds that will be borrowed from international banks. The feedstock for the new plant will be supplied from the Tengiz oil field by JV Tengizchevroil LLP through a pipeline, which will be built by KMG.Development Bank of Kazakhstan (DBK) was organized in 2001. The bank finances medium- and long-term investment projects in infrastructure and non-resource sectors and attracts external and internal investment in the republic. DBK is part of National Managing Holding Company Baiterek, which was created in May 2013 to manage the stakes in the national institutes of development, the national companies and other legal entities. Baiterek either owns such stakes or manages them on behalf of the other stakeholders. (ICE ALMATY)

Fonte notizia: INTERFAX