Executive Summary Note: The codes in parentheses denote the title codes used in the report body (Body) of the REPORT hereinafter. 1. Process-facility Configuration (Chapter 3 and Chapter 4) (1) Aromatics Project is located in the Aryrau Refinery, to produce 496,000 MT/Y (= 496 KMTA) of para-xylene (PX) and 133 KMTA of benzene (BZ) from the Reformate supplied from the CCR Project, in which their capacity figures have been instructed by KMG (Figure S-1-1). Out of the PX, 250 KMTA would be exported overseas, while the PX remainder and the BZ would be sent to Petrochemical Complex. (2) Petrochemical Complex is located in Karabatan, to produce and ship 188 KMTA of PTA, 200 KMTA of PET, 179 KMTA of EB and 200 KMTA of PVC, in which 246 KMTA of the PX, and the BZ (133 KMTA) would be used as the raw-material (Figure S-1-2 to 3). (3) Production processes used in the above-mentioned projects (Projects) are briefly explained in the Chapter 3 of the Body. 2. Market Study of the Products (Chapter 1) The markets at the year of 2012 are analyzed each in the Body with the related statistical data represented by the UN’s. 2-1. Aromatics Project Eastern and Western Europe, and China are named as the targeted markets of PX in view of the balance between the consumption and the production capacity. Poland and Lithuania out of Eastern Europe, and Belgium, Germany, and Spain out of Western Europe are the candidates (Figure S-2-1 to 3). Table S-2-1: Candidates for PX Exports (KMTA) Forecasts for 2012 Eastern Europe Western Europe China PX consumptions (A) 1,179 2,560 10,710 PX production capacities (B) 886 2,335 8,045 Balance (A)-(B) 293 225 2,665
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Executive Summary
Note: The codes in parentheses denote the title codes used in the report body (Body) of the
REPORT hereinafter.
1. Process-facility Configuration (Chapter 3 and Chapter 4)
(1) Aromatics Project is located in the Aryrau Refinery, to produce 496,000 MT/Y (= 496
KMTA) of para-xylene (PX) and 133 KMTA of benzene (BZ) from the Reformate supplied
from the CCR Project, in which their capacity figures have been instructed by KMG (Figure
S-1-1). Out of the PX, 250 KMTA would be exported overseas, while the PX remainder
and the BZ would be sent to Petrochemical Complex.
(2) Petrochemical Complex is located in Karabatan, to produce and ship 188 KMTA of PTA,
200 KMTA of PET, 179 KMTA of EB and 200 KMTA of PVC, in which 246 KMTA of the
PX, and the BZ (133 KMTA) would be used as the raw-material (Figure S-1-2 to 3).
(3) Production processes used in the above-mentioned projects (Projects) are briefly explained
in the Chapter 3 of the Body.
2. Market Study of the Products (Chapter 1)
The markets at the year of 2012 are analyzed each in the Body with the related statistical data
represented by the UN’s.
2-1. Aromatics Project
Eastern and Western Europe, and China are named as the targeted markets of PX in view of the
balance between the consumption and the production capacity. Poland and Lithuania out of
Eastern Europe, and Belgium, Germany, and Spain out of Western Europe are the candidates
(Figure S-2-1 to 3).
Table S-2-1: Candidates for PX Exports (KMTA)
Forecasts for 2012 Eastern Europe Western Europe China
PX consumptions (A) 1,179 2,560 10,710
PX production capacities (B) 886 2,335 8,045
Balance (A)-(B) 293 225 2,665
Reformer
Deh
epta
nize
r
Liquid Extraction
Xyle
neSp
litte
r
Benzen & TolueneColumn
PX Recovery
PX Isomerization
TolueneTransalkylation
Xyle
neR
erun
C5+889
C7-336
BTX286
HDTNAPHTHA
1,000
BENZENE
RAFFINATE
LPG
FG4
C8+553
C8+1,153
C8A2,288
PX
C8A1,719
C8A1,785
C8+599
C6+885
C9+584
T7T7
T421
T428
FG19
BT32
H23BT 81
H219
C9541
FG71
FG
HEAVIES
H251
43
95
496
133
149
33Product StreamFG Fuel Gas StreamH2 Hydrogen Stream
Figure S-1-1: Process Flow of Aromatics Project (The Reformer is out of the scope of the Project)
S-2
Karabatan SitePetrochemical Complex Project
Atyrau Refinery Site
Aromatics Project
CCR Project1,000 CCR Reformate 889
149
Naphtha
43
PX Plant 496 Raffinate
Heavies
PX 246 BZ 133
KPI Project
Olefin Plant
Ethylene 41
48
Oxygen 40
EO/EG Plant
EG 68
PTA
PTA Plant 362
174
PET Plant 200
EB 179
PTA Export 188
179EB
Aktau ProjectSM Plant
PS Plant PS 300 PET 200
250PX Exports
Figure S-1-2: Process Flow of Petrochemical Complex (200 KMTA of PET, 188 KMTA of PTA and 179 KMTA of EB)
S-3
S-4
171
Caustic Soda 125
Rock Salt
KPI Project
Olefin Plant
Electrolysis Plant
Chlorine 117
EDC*536
EDC Plant
VCM Plant
VCM 202
PVC Plant
PVC 200
Ethylene 94
Petrochemical Complex (@Karabatan)
Oxygene 28
Figure S-1-3: Process Flow of Petrochemical Complex (200 KMTA of PVC)
Note: *536 KMTA of EDC is recycled in the VCM production of the balanced process.
S-5
-300
-200
-100
0
100
200
300
400
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
PX
Bal
ance
(KM
TA)
CalculatedExperienced Figure S-2-1: PX Balance* in East Europe
Equity-payout-period Calculation (MMUS$)Equity to be returned: (paid out at 6th year) -20 -40 -60 -80 -80 -75 -61 paid out*** Totaling NPVs from the Project commencement to the 20th year.
Project Year
PET ProductionPET Production Capacity KMTA 100Kazakhstan (1,065$/T) KMTA 44Russia (1,010$/T) KMTA 56Eastern Europe (1,005$/T) KMTA 0Other Central Asian Countries (940$/T) KMTA 0
PET Unit Price $/T 1,034
PTA Production Capacity KMTA 87PTA Exporting KMTA 0
*** Totaling NPVs from the Project commencement to to the 20th year.
Equity-payout-period Calculation (MMUS$)
Equity to be returned: ( not paid out) -10 -30 -50 -70 -70 -70 -70 -70
Project Year
7. Financing for Petrochemical Complex (Chapter 8)
Petrochemical Complex requires to establish a special purpose company (SPC) and the
financing would be of a project finance based on the assets and the profit in the Project, in which it
is necessary to clear securities against the following risks:
(1) Risks in Pre-completion Stage to be secured with the Completion Guarantee, etc.
(2) Risks in Post-completion Stage to be secured with Operation Agreement, Long-term Supply
Contract, Long-term Off-take Agreement, etc.
(3) Foreign Currency Conversion Risk
(4) Political Risk
(5) Regulatory Risk, of a policy-change risk
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8. Environmental and Social Impact (Chapter 10)
Excluding PVC production of which subsidiary raw material is harmful chlorine, the
fundamental raw materials are clean aromatics extracted from reformate and ethylene comes from
ethane in the associated gas. Accordingly, the project is environmentally mild one.
8-1. Impact on Atmospheric Environment
The Atyrau Oil Refinery has been recently promoting the introduction of advanced oil refining
processes to upgrade its oil products. The upstream CCR process of this project is included in the
series of oil product upgrading. In general, advanced oil refining process additionally produces
light hydrocarbon components consumed as fuel gas in the refinery to decrease sulfur containing
fuel oil consumption and air pollutants emission. Actually, the pattern of fuel consumption in the
Atyrau Oil Refinery, which has recently promoted advanced oil refining processes, has converted
from the fuel oil major one to the fuel gas major one. The trend of fuel gas major in fuel
consumption might make it possible to operate high efficient steam and power cogeneration
facilities utilizing gas turbine power generators and heat recovery steam generators. In other
words, the project has a possibility of air quality improvement in Atyrau territory in the future not
causes negative impact on air quality.
In the Karabatan Site, the major part of fuel is consumed for power generation to supply
enormous power to PVC production plant. In order to generate low cost power the application of
gas turbine cogeneration system might be indispensably required. As a result of natural gas
consumption in GTG cogeneration system, the impact of the project implementation on the air
quality will be minimal. Although enormous quantity of harmful chlorine is handled in PVC
production plant, the technologies for prevention of chlorine leakage from enclosure and the
process for harmlessness of chlorine has worldwide developed and utilized. With such reliable
technologies and processes, there will be scarce possibility of serious impact on environmental
issues caused by the PVC production plant.
8-2. Impact on Water Environment
The water utilized in Atyrau Oil Refinery comes from the Ural River, while it is prohibited to
discharge the industrial effluents into the Ural River or the Caspian Sea in order not to damage the
water qualities of them. The Atyrau Oil Refinery utilizes the evaporation pounds for waste water
treatment. With enormous land area and scarce rainfall in Kazakhstan, it is rather general
procedure to utilize the evaporation ponds for waste water treatment and dispose of remaining
wastes in the landfill without inhabitants. Assuming that not only the Atyrau Oil Refinery but
Karabatan Site of the project applies the same procedure of waste water disposal, the project will
not bring serious impact on the qualities of water basins.
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8-3. Industrial Wastes
The major wastes of the project might be waste catalysts and waste polymers. As for waste
catalysts, the recovery system to return them to the suppliers has worldwide firmly established, it
will not be serious issues for project owner. The polymer wastes are substantially stable not to
cause environmental damages, if left as they are. The polymer wastes are sometimes utilized as
off-specification grade or, excluding PVC which includes harmful chlorine, they are burnt in the
incinerator.
As the major raw materials of the project are clean aromatics and ethylene, which do not
contain harmful components such as heavy metals, there will be scarce possibility of serious
environmental issues.
8-4. Noise and Vibration
Because the Atyrau Oil Refinery is situated in the exclusively industrialized zone far from
residential zone, there will be scarce possibility of noise and vibration impact to the inhabitants by
the project implementation. Karabatan Site is situated in the desert area without inhabitant
approximate five (5) km far from neighboring village and there will be scarce possibility of noise
and vibration emitted by the project will not cause any environmental issues.
8-5. Landscape
The Atyrau Oil Refinery is situated in the exclusively industrialized zone not to damage the
landscape by the project implementation. The Karabatan Site is situated in the desert area with
almost no vegetation or artificial structure not to damage the landscape by the project
implementation.
8-6. Social Impact
The project sites of the project are Atyrau Oil Refinery and Karabatan newly developed
industrial zone. The former is in the existing oil refinery, while the later is in the remote desert
zone with no inhabitant. Accordingly, no migration of inhabitant is necessary for the project
implementation in both project sites and the social impact by the project implementation will be
minimal.
The logistic quantities of materials of the project will be 700 KMTA for the Atyrau Oil
Refinery and 1,200 KMTA for the Aromatic Complex in Karabatan Site. The logistic quantities of
materials will not so much change after the project realization in the Atyrau Oil Refinery. For the
Karabatan site with almost no logistic quantities of materials at present, the local traffic impact
caused by the project implementation looks as if quite serious. However, there are few inhabitants
to be affected by the increase in logistic quantities of materials and the social impact by the increase
S-42
in traffic for the project might be minimal in the Karabatan Site.
The increase in employment by the project implementation is expected to be approximately
2,000 employees in total of the Atyrau Oil Refinery and the Karabatan Site during three (3) year
construction phase. The increase in direct employment by the Atyrau Oil Refinery and Aromatics
Complex in Karabatan during commercial operation is expected to be about 300 employees totally.
In addition to the increase of direct employment, the increase in indirect employees of residential
contractors in Atyrau Oil Refinery and Karabatan Site will be approximate 100 employees in total.
Accordingly, the positive social impact by the project implementation will by far exceed the
negative one.
9. Development of Plastic Industry in Kazakhstan (Chapter 9)
9-1.Strengthening and development of educational system to promote plastic industry in
Kazakhstan
9-1-1. Background of human resource development in plastic industry
It seems that there is no integrated manufacturing company from mold designing to the final
plastic products. Absence of plastic industry association makes it difficult to collect definite
information. As for academic institute, there are no special institutes that can teach design and
manufacture precision plastic moldings. Some engineering collage teaches CAD, however, it is
not focus on practical plastic dies making. Also, some university and polytechnic have open
college courses for workers for skill training but it is not directly connecting to plastic molding.
Moreover, vocational training for working people on metalworking and plastic molding is mostly
neglected in the country.
Human resource development is indispensable factor to promote market competitiveness of
plastic industry in Kazakhstan.
9-1-2. Target goal of human resource development in plastic industry
To promote plastic industry of Kazakhstan as an economic driving engine for next generation
9-1-3. Objective to promote human resources
(1) Human resource development is indispensable for production of precision plastic parts and
components
(2) Industrial promotion can first be discussed with nurturing human resources
(3) Qualified human resource could be a creditable drive force in any industry.
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(4) Vocational training, skill improvement for workers, training of qualified technicians and
engineer has not been tackled in the country.
9-1-4. Approaches
(1) Promote products which require only a simple technology to compensate import substitution
and to boost competitiveness within central Asian market
(2) Promote public purchasing in order to nurture domestic production
(3) Enumerate domestic products for import substitution and give special preference to help
them to invest in a high-tech machines
(4) Develop plastic specialized industrial park with common service facility for joint
development, public research institute for technology assistance and for public/private joint
activity
(5) Combine human resource development project and plastic industry promotion project as one
project to enjoy synergetic effects
(6) Discuss precision plastic manufacturing, following the low skill products manufacturing and
training.
9-1-5. Outline of the human resource program
As explained in the above section, human resource development program is better to be
tackled in other project simultaneously because it is targeting to boost national economy at final.
Here, we will introduce only an outline of the human resource development program by
summarizing mile stone subjects.
(1) Associate relating companies and organizations
(2) Develop resource network
(3) Make training of instructors
(4) Strengthen training facility and equipment to execute improvement of training program
9-2. Establishment of plastic industry association
9-2-1. Objective of the recommendation
Association, generally, deal with increasing profit of the industry. However, there is no
association representing plastic industry in Kazakhstan.
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9-2-2. Approach to establish industrial association
Most of business entities do not aware of the importance and capability of association. This
is the main reason why association activities in Kazakhstan do not active. In addition to self effort
by private entities, governmental support is also significant to establish the association.
(1) Top priority activity to establish the association:
- Irradiate private firms about the profit to associate
(2) Support from the government
- Cooperative Law for industrial sector
- Law for commerce and industry cooperative
- Law for credit cooperative
9-2-3. Activities of Japan Plastics Industry Federation (JPIF)
The following activities of JPIF would provide the Project with useful information:
(1) Activities for the plastics industry such as assistance in taxation, making of measures for
SMEs and against recessions, etc.
(2) Activities on industrial statistics to grasp the trend of the industry
(3) Activities for the society in view of conserving of the environment and securing of the safety
(4) Activities related to safety of plastics in electronic materials
(5) Public relations to deepen the understanding on plastics by the society
(6) Activities related to codes and standards
(7) International activities such as dispatching overseas of the survey team
S-45
All rights reserved. The copyright of this material is held by the Agency for Natural Resources and Energy, Ministry of Economy, Trade and Industry (METI). Reproduction of all or part of this material without express permission of the copyright holder is strictly prohibited. The Japan External Trade Organization (JETRO) was commissioned by METI to produce this material. Japan External Trade Organization (JETRO) Industry and Technology Division Industry and Technology Department Ark Mori Building 6F, 12-32 Akasaka 1-chome, Minato-ku, Tokyo, 107-6006 JAPAN TEL:03-3582-5542 FAX:03-3582-7508