KMG and Tatneft signed an Agreement on the basic terms of cooperation on the Butadiene project

On April 5, 2021, in Saran, Karaganda region, an Agreement was signed on the basic terms of cooperation on the Butadiene project, implemented by JSC NC KazMunayGas (hereinafter – KMG) together with PJSC Tatneft (hereinafter – Tatneft). The agreement was signed as part of the official ceremony of laying the foundation stone for the future tire production plant, which was attended by Prime Minister of the Republic of Kazakhstan Askar Mamin, President of the Republic of Tatarstan Rustam Minnikhanov, Chairman of the Board of KMG Alik Aidarbayev,

CEO of Tatneft Nail Maganov.

The implementation of the project for the production of butadiene rubbers in Atyrau region is planned until 2025. The capacity will be 186 thousand tons of butadiene rubbers and 170 thousand tons of isobutane. The raw material for the plant will be butane, produced by Tengizchevroil LLP. The finished products will be supplied to a tire factory in the Karaganda region, as well as for export to European countries, Russia, China, Turkey and others. The implementation of this initiative will make it possible to create about 2,000 jobs during the construction period and 400 jobs during the operation of the plant.

Tatneft is one of the key partners of the national company KazMunaiGas. We are actively developing cooperation in a variety of areas – from the supply of goods and equipment to the organization of activities to increase the oil recovery of mature fields. And I am pleased to note that our joint efforts have begun to bear fruit. Today we have signed an agreement on the basic conditions of cooperation on the project for the production of butadiene and rubbers based on it. Of course, this is another important stage for the development of the national petrochemical industry and another confirmation of the inviolability of our partnership," A. Aidarbayev said. "Tatneft has a long-standing good partnership with our colleagues from KazMunayGas. After a short pause related to the coronavirus pandemic, negotiations on joint projects returned to the active phase. The new joint butadiene production project is closely linked to the construction of a tire complex in Sarani. We will provide Kazakhstan's tire production with local raw materials, contributing to the base of the Eurasian Economic Partnership of our countries," N. Maganov stressed: Recall that in July 2019, a Memorandum of Understanding was signed between KMG and Tatneft, which outlined the proposed areas of cooperation. In November 2019, the companies signed a Roadmap to ensure the introduction of the best practices of PJSC Tatneft into the oil and gas industry of the Republic of Kazakhstan. In November 2020, KMG and Tatneft signed an Action Plan for cooperation to study the economic feasibility of implementing a project for the production of butadiene rubbers.

For reference:

Styrene-Butadiene-Styrene (SBS) is used to modify bitumen, in the production of adhesives, adhesives and rubbers.

Styrene butadiene synthetic rubber (DSSC) is used in the manufacture of tires that have good wear resistance, frost resistance and dynamic endurance.

On November 2-3, 2022, as part of the implementation of the project "Production of butadiene and its derivatives" at the construction site

Early construction and installation work has begun on the future plant. Recall that in November 2021, JSC NC KazMunayGas and PJSC Tatneft established a joint venture for the production of butadiene rubbers with a construction completion date in 2025. It is planned to produce five different types of products: styrene-butadiene-styrene (rubber, which is used in road surfaces, in the manufacture of glue, plastic, etc.), divinyl-styrene synthetic rubber (rubber used in the tire industry, part of which is planned to be supplied to a tire plant in the Karaganda region), butadiene (used for the production of synthetic rubbers), isobutane-isobutylene fraction (intended for the production of methyl tert-butyl ether, butyl rubber, isoprene and alkylate), methyl tert-butyl ether (an additive for increasing the octane number of gasoline).