BAKU, Azərbaijan, May 21
By Nargiz Sadikhova - Trend:
German Borealis made a decision to suspend development of a polyethylene project in Kazakhstan, Trend reports with reference to the company.
The company said that the decision to discontinue the project is based on a thorough assessment of all aspects of the prospective venture and impacted by the effects of the COVID-19 pandemic as well as the increased uncertainty of future market assumptions.
Borealis and Kazakhstan's United Chemical Company LLP (UCC) signed Joint Development Agreement in Abu Dhabi on Mar. 24, 2018.
The agreement oversaw development of a world-scale polyethylene project, integrated with an ethane cracker, in Kazakhstan.
A Memorandum of Understanding (MoU) was also signed to cooperate on a 500 ktpa polypropylene project that was being implemented by Samruk-Kazyna Sovereign Wealth Fund.
The final investment decision on the project was to be made in 2020 and start-up was to be scheduled for 2025.
Through this strategic partnership, Borealis and UCC were exploring the opportunities of jointly developing the Kazakhstan polyolefin industry.
Zhenis Osserbay, UCC Chief Executive said during initial agreement signing that a polyethylene plant of this scale would be a significant step forward in creating long term, sustainable value for Kazakhstan from its petrochemical industry
Borealis is a leading provider of innovative solutions in the fields of polyolefins, base chemicals and fertilizers.