TATNEFT & KazMunayGas set up new joint venture in Kazakhstan

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CHEMICALS & BIOCHEMICALS

Russian oil and gas company TATNEFT and Kazakhstan’s national oil and gas corporation KazMunayGas have agreed to set up a joint venture for the production of butadiene rubbers.

The new factory is expected to start production in 2026 at the National Industrial Petrochemical Technoparc, a free economic zone in the Atyrau region in Kazakhstan. About 2,000 jobs will be created during the construction stage, with a further 700 when the facility begins operations.

The planned capacity of the enterprise will reach up to 180,000 tonnes of butadiene and butadiene rubbers per year. The shares of KazMunayGas and TATNEFT in the project will amount to 25% and 75%, respectively. The preliminary cost of the project is estimated at about $1 billion, and the parties are considering options for financing the project, including through borrowed funds.

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Finished products will be supplied to a tyre manufacturing factory in the Karaganda region, as well as exported to Russia, China, Turkey and several European countries.

Nail Maganov, General Director of TATNEFT, said: "We have big plans in petrochemistry, and we are happy to develop this area together with our Kazakh partners. Kazakhstan is a strategic partner for us. I am confident that the new joint venture for the production of butadiene rubbers will contribute to strengthening the economies of our countries and the well-being of our people."

Alik Aydarbayev, Chairman of the Management Board of JSC NC KazMunayGas, commented: "Our company seeks to expand the value chain of our products and is actively developing the petrochemical industry in the Republic of Kazakhstan. I'm sure that the project will contribute to the establishment of partnership relations between Kazakhstan and Tatarstan, and will also diversify the economy of our country."

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