Projects
Chevron Launches First Metal-Plastic Pipe Production in Kazakhstan
Setting a course for innovation and economic diversity in Kazakhstan, Chevron has inaugurated an advanced, high-tech production process for manufacture of composite metal-plastic pipe at the Atyrau Polyethylene Pipe Plant (APPP). No other facility with this capability exists in any of the CIS countries.
The opening ceremony to launch production at the expanded APPP was attended by Managing Director of Chevron’s Eurasian Business Unit Jay Johnson, First Deputy Akim of the Atyrau oblast Bolat Daukenov and Chairman of the Board, NC KazMunaiGas JSC Kairgeldy Kabyldin.
“The current expansion of the APPP is a vivid example of Chevron’s long-term commitment to the diversification and economic development of Kazakhstan,” said Johnson. “The plant has already successfully implemented its major goals such as establishing a profitable business for the manufacture of polyethylene pipes in Kazakhstan, setting up manufacturing according to international standards, and creating jobs and training for Kazakhstani employees. We never stop at what we have achieved. We invest in further development and apply new technologies. Introduction of this new metal plastic pipe production facility is an example of this approach.”
Expressing confidence in the future, Kairgeldy Kabyldin said, “Launch of the APPP process will stimulate domestic manufacturers to expand the range of the products produced, set up new production facilities, and create additional jobs.”
Chevron Exemplifies Partner of Choice
Chevron is a major investor in Kazakhstan and this third expansion of APPP aligns with the implementation of the governmental program for innovative industrial development. Previously, Kazakhstan purchased metal-plastic pipes from Turkey, China and other countries. But now these vital products are produced in Kazakhstan, and are available for domestic sale and for the worldwide market.
The APPP helps diversify Kazakhstan’s economy and complements the company’s core activity: oil production from Tengiz and Korolev (TCO) and Karachaganak (KPO B.V.) fields, and hydrocarbon transportation by the Caspian Pipeline Consortium (CPC).
Chevron’s strategy for diversification has four key elements: establishing a profitable business, meeting international standards for production and services, meeting customer requirements, and creating jobs and training for Kazakhstani employees.
In the 1990s, Chevron also built a chain of gasoline stations that met international standards. In 2003, under its investment program, Chevron constructed and launched the APPP in Kazakhstan. The $24 million investment introduced 22 international standards for pipe production to Kazakhstan and encouraged development of more than ten similar plants in Kazakhstan only eight years after start up of APPP. In 2005, APPP carried out its first expansion which doubled polyethylene pipe production capacity to 6.5 tons per year. A section for fabrication of fittings was launched in 2007.
Today, in addition to the new metal-plastic pipe production, APPP operates five processing lines with total capacity to produce 15,000 tons of polyethylene pipes annually. The pipes range in diameter from 25 to 1200 mm and have a design pressure rating of up to 16 atmospheres. Two processing lines are in place for making 12 to 40 mm diameter metal-plastic pipes. With the installation of a third production line scheduled for the end of this year, the plant will have the capability to produce 110 mm diameter metal-plastic pipe, and will reach its design capacity of 2,000 tons of metal-plastic pipes per year.