Petrofac Consortium Appointed by KLPE LLP (KLPE) for Integrated Petrochemical Project in Kazakhstan

Petrofac in consortium with Linde AG of Germany (Linde) and GS Engineering & Construction Corporation, Republic of Korea (GS) (the ‘consortium’) have been engaged by KLPE LLP (KLPE), to provide services in relation to development of its Integrated Petrochemicals Complex and Infrastructure (IPCI) project, situated in the Tengiz and Karabatan regions of Kazakhstan.  

The US$77 million first phase of the contract, valued at approximately US$21 million for Petrofac’s share, will involve the consortium undertaking engineering work on an Open Book Estimate (OBE).  Petrofac will lead the consortium for the execution of the IPCI project and subject to satisfactory conclusion of the OBE and successful contract conversion, it is contemplated that the IPCI project will move into a second phase, in excess of US$3.5 billion, for a polyethylene plant comprising two streams each producing 400,000 tonnes per annum of product.  

The eventual scope for the IPCI petrochemical project will include the engineering, procurement, construction and commissioning of a gas plant, ethane cracker, gas pipelines, polyethylene plants and associated utilities and offsites in the Tengiz and Karabatan areas.   

Marwan Chedid, Chief Executive of Petrofac’s Engineering, Construction, Operations & Maintenance (ECOM) division, commented:  “Alongside our partners, Linde and GS, I believe our consortium has the ability to deliver a high quality project.  I am delighted that we are involved in such a strategic project with KLPE which represents another significant milestone for us in our relationship with the Kazakh market.”  

Petrofac’s ECOM division has been active in Kazakhstan for almost a decade and has successfully delivered a number of projects in the country.  Separately, in July Petrofac ’s Integrated Energy Services business signed a Memorandum of Understanding with KazMunaiGas Exploration Production JSC (KMG EP) allowing the parties to explore opportunities to enhance oil production from the mature Emba fields of KMG EP’s 100% subsidiary EmbaMunaiGas JSC (EMG).