MOSCOW (MRC) -- Test operations at a new gas chemical complex (GCC) for processing natural gas and producing polyethylene (PE) and polypropylene (PP) in the village of Kiyanly started back in August. An official launch of production took place on 17 October, reported MRC analysts.
Production capacities of the new complex in Turkmenistan had been built by the summer, but due to a number of reasons, the start of production took place a few months later. The complex began operating in a test mode in August, and the official launch took place almost two months later - on 17 October.
Sales of test quantities of PE and PP began at the Turkmen State Commodity and Raw Materials Exchange in early September. The trades participants said about 4,000 tonnes of polymers have already been sold since the start of sales. In the first half of October, deals were done at USD1,100/tonne FCA Kiyanly, with shipment within a two-month period.
As reported earlier, the new complex's production capacity will allow to process 5 billion cubic meters of natural gas per year, which, in its turn, will allow to produce 381,000 tonnes of high density polyethylene (HDPE) and 81,000 tonnes of PP and other products.
The construction of the GCC worth USD3.4 billion in Kiyanly was carried out since 2014 in accordance with a trilateral contract among the Turkmengaz State Concern and South Korean companies LG International Corp. and Hyundai Engineering Corp. Ltd, as well as Japanese TOYO Engineering Corp.
The Turkmengas State Concern is a Turkmen gas producing and gas distribution company, the largest company in Turkmenistan. It deals with all aspects of the gas business: exploration, mining, transportation, processing. Headquarters is situated in Ashgabat. 100% of the company's shares are managed by the government of Turkmenistan.
MRC