LG Chem signs USD 4bn deal with Kazakhstan.

By bne IntelliNews August 26, 2011
LG Chem, the largest chemical company in South Korea signed USD 4bn deal to develop a large petrochemical complex in near the western Kazakh city of Atyrau. The company is in a parity basis joint venture with Kazakhstan Petrochemical Industries. Commercial production at the complex is scheduled to begin in 2016. LG Chem will form the second phase of the project. The first phase of the project worth USD 2bn was undertaken by Chinese company Sinopec Engineering. The second phase assumes construction of ethylene and polyethylene plants with annual capacities of 840,000 tones and 800,000 tones respectively. Kazakhstan Petrochemical Industries is owned by KazMunayGas (51%) and Sat & Co (49%). The deal was among several agreements signed during the visit of South Korean president Lee Myung-bak. The others include an agreement to develop and finance construction of a thermal power station in Balkhash (600 km north of Almaty).

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