News 2013#3 (75), June 2012
Japanese Hyundai Marubeni will finance modernization of the Pavlodar Petrochemical Plant. “I’d like to state that KMG’s Unit for Implementation of Projects led by Nurlan Balgimbayev executed a great deal of work on the selection and attraction of financing.
To date, negotiations were held with Consortium Hyundai Marubeni and a positive decision was taken that this consortium will finance the plant’s modernization and a turn-key construction,” said Shukhrat Danbay, general director of Pavlodar Petrochemical Plant at the meeting held on March 11 with participation of the Deputy Prime Minister Kairat Kelimbetov who had a working trip to the Pavlodar region.
According to S. Danbay, drawing up of design estimates of the plant’s modernization will be completed by the end of 2012. Construction will be commenced in 2013 and completed in the 4th quarter of 2015. At present, there is a backlog of the schedule which can be eliminated due to cooperation with Hyundai Marubeni.
“We have a backlog of the network schedule. However, a decision was found that this consortium will place orders for equipment requiring long term manufacture by using own means, early financing and not waiting a final part of design estimates; and this will give us a possibility to reduce the terms by 11 months,” explained S. Danbay.
“Therefore, on the whole, we will not deviate from the schedule and by 2016 will release gasoline of Euro-5 standard,” he underlined. The general director reminded that the plant took the obligations to process 5 million tons of oil in 2012. The budget of Pavlodar will receive KZT6.5 billion as excises from the company.
“Upon modernization of Pavlodar Oil Refinery, a possibility will appear to process not only the Russian oil, but also the Kazakhstan crude,” informed S. Danbay.
Let's remind that the feasibility study for the plant’s global modernization performed by Italian Eni, in October of the past year passed state examination and was approved by the plant’s technical council and investment committee of NC KazMunayGas.
The amount of investments into the modernization project, according to the feasibility study, is estimated at $1.69 billion. As it was informed, it was envisaged by the modernization project to increase the plant’s processing capacity up to 7.5 million tons of crude oil per year with the net yield reaching 90 %, to increase the production of petroleum products and maintain the quality corresponding to the environmental Euro-5 standard. At the same time, it is planned to build 5 new units. In addition, 2 existing units will be restructured for a different function and 8 – reconstructed. Also, it is planned to build the plant’s necessary facilities, informs КаzТАG.