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LG Chem cancels $4 billion project in Kazakhstan

 

PROJECT NEWS

Plastics Industry Latest Victim of Low Oil Prices

Reported by Assylkhan Ziyash in Almaty

23 March 2016 – Almaty, Kazakhstan – Nearly five years ago, LG Chem had agreed to build the plastics complex near Atyrau in western Kazakhstan in a 50-50 joint venture with Kazakhstan Petrochemical Industries (KPI). The state-owned KazMunaiGas Exploration Production owns 51 percent of KPI, and the privately owned Kazakh company SAT owns the remaining 49 percent of KPI.

160323-pmwj45-Ziyash-IMAGEThe joint venture between LG Chem and Kazakhstan was to help the Kazakh government develop its petrochemical industry. The complex near Atyrau was to have processed ethane, a component of natural gas, and process, or “crack,” it into ethylene. The project was to have been owned and operated by KPI.

The complex had been designed to produce as many as 840,000 metric tons of ethylene per year and 800,000 tons of polyethylene per year. Since it agreed to the joint venture in Kazakhstan, though, LG Chem has decided it should invest in “more promising” ventures elsewhere.

For more information please click on the following link:

http://oilprice.com/Latest-Energy-News/World-News/Plastics-Industry-Latest-Victim-Of-Low-Oil-Prices.html