Borealis scraps its $6.8 billion petrochemical project in Kazakhstan.
Borealis of Austria recently announced that it will no longer continue its development in an integrated ethane cracker and polyethylene project that had been anticipated to be built in Atyrau, Kazakhstan. The primary reason for this cancellation was cited as another effect of the coronavirus pandemic and the related uncertainty in regional future markets.
Borealis originally signed on to jointly develop this project with Kazakh’s United Chemical Company as a 50/50 venture in 2018. This project was to include an ethane cracker and two polyethylene units with a combined capacity of 1.25 MMtpy, with feedstock coming from the giant Tengiz field of Kazakhstan. The final investment decision had been expected by the end of this year for a late 2025 startup.
This project was intended to access the plentiful feedstock from the Tengiz supply to supply markets in the CIS and beyond, but the pandemic driven drop in hydrocarbon prices made this project unlikely and another setback for Kazakhstan as it has been trying to move from its reliance upon raw commodity exports to value added petrochemical products instead.
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From the April 2018 issue of Hydrocarbon Processing