Foster Wheeler Awarded Feasibility Study for Petrochemical Complex

Foster Wheeler Italiana S.p.A. has been awarded a contract by KazMunaiGas Exploration and Production (KMG EP) for a detailed feasibility study for a new petrochemical complex and related facilities to be built in several locations in Western Kazakhstan. KMG EP is the state-owned oil and gas company of the Republic of Kazakhstan.

The proposed facilities, for which the expected final total investment cost is in excess of $4 billion, would be built in two phases. Phase 1 would include a gas separation unit to be built near the town of Kulsary to treat dry gas from the Tenghiz field and separate ethane and propane, and a petrochemical complex to be built near the city of Atyrau to process the ethane and propane and produce polyethylene and polypropylene. Phase 2 would include an additional gas separation unit to be built in Karabatan to treat dry gas from the Kashagan field and expansion of the Atyrau petrochemical complex. The final capacity of the Atyrau complex would be up to 1,500,000 tons per year of polyethylene and up to 450,000 tons per year of polypropylene.

"We are delighted to have been selected by KMG EP and to have the opportunity to participate in such a large and prestigious investment that would contribute substantially to the Republic of Kazakhstan's industrial development. This award reflects the quality and the depth of our technical and project execution expertise, and also our considerable petrochemicals and gas processing experience," said Giorgio Veronesi, project director and executive sponsor of Foster Wheeler Italiana's projects in the Commonwealth of Independent States (CIS).

"We have selected Foster Wheeler Italiana after an international competitive tender, in accordance with Kazakhstan State purchasing rules. We were pleased with Foster Wheeler's tender: its competitive pricing, aggressive schedule and its proposed execution strategy for the study," said Roustem Bekturov, deputy general manager of KMG Exploration and Production.

The feasibility report is expected to be completed in the first quarter of 2006. The facilities are expected to be mechanically completed between 2009 and 2012, depending on the final selected configuration and execution scheme.

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Posted 11/01/06

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