kazakhstan chemical industry overview · its halogenous formation is defined by most complete...

Kazakhstan Chemical industry

overview

October 2013

1

Cooperation Offer

One of the main assets of Kazakhstan is its mineral resources. Out of 105 chemical elements in the Mendeleev's Periodic Table, 99 elements have been identified in the soil of Kazakhstan, reserves of 70 elements have been explored, 60 chemical elements are used in manufacture. Out of 11 billion tonnes of minerals recovered worldwide, 250 million tonnes are recovered in Kazakhstan, which makes Kazakhstan the 11th place in the world rating. Kazakhstan ranks from 1st to 19th in production of 37 types of raw materials. Kazakhstan has large resources of phosphorites, sulphur, potash salts and other mineral raw materials, on which the chemical industry can be based. Approximately, deposits of 4 potash salt-dome structures presented for exploration are generally assessed as more than 1 bln.tonnes of ore. Desired investment for exploration is assessed as $15-20 mln. for each structure.

2

Benefits

We consider that the investment project has significant benefits:

1. Access to mineral raw materials The salt-dome structures presented for exploration are located in one of large potash fields in the world – the Caspian Depression. Its halogenous formation is defined by most complete series of sedimentations and represented by carbonates, terrigenous-carbonaceous, carbonate-sulphate, sulphate, chloride-sulphate and chloride sediments.

2.Creating favorable conditions for direct investments Along with creation of general favorable environment, special conditions will be created for large and transnational companies implementing projects within the Republic of Kazakhstan. For investment projects in the priority sectors –investment preferences provided by the Law of the Republic of Kazakhstan “On investments” and special procedures for issuing entry visas for foreign experts on an immediate and gratis basis.

For large and priority investment projects in partnership with acknowledged foreign investors and transnational companies, separate investment agreements stipulating special measures of government support will be made: tax benefits and preferences;

providing minimum long-term government order and order of national companies; other financial and nonfinancial incentives.

Decisions on these support measures in the context of investment agreements will be made at the Government level.

Ко

нф

ид

енц

иал

ьно

3

3. Strategic location Geographically, Kazakhstan is located favorably for sales of products due to close vicinity of such markets as China, Russia, and has access to large ports in the world. The Republic of Kazakhstan is a member state of the Customs Union along with the Russian Federation and Belarus, which ensures free movement of goods between the Union countries, where the integrated customs area with internal market of approximately 165 mln. people will be created. Moreover, the unique geographical location of Kazakhstan makes it possible to reach a position of powerful global stakeholder in Asia and CIS region (Russia, Central Asia, China, Iran, India).

4. Strategic partnership • The United Chemical Company was established on 21 January 2009 to execute instructions of the President of the Republic of Kazakhstan in development of the chemical industry. • Its sole shareholder is the Government of the Republic of Kazakhstan via the “Samruk-Kazyna” Sovereign Wealth Fund. • One of the main objectives of the Partnership is to assist in development of the chemical industry of the Republic of Kazakhstan as a priority sector and increase its share in GDP. According to the government program on accelerated industrial and innovative development, placement of the chemical industry businesses with initial distribution is connected to sources of raw materials (Zhambyl, Aktobe, Atyrau and South Kazakhstan regions - nitrogen, phosphoric, potash, complex mineral fertilizers).

4

Shugul

Kruglyi Lebyajenskoye

Inderskoye

Infrastructure: • The salt-dome structures are located in the West Kazakhstan and Atyrau regions •Within a radius of 20 - 100 kilometers, there is Inderbor town and within a radius of 165 – 250 kilometers, there is Atyrau city; • in close vicinity to the district, there is the Ural River; • there is railway going to Atyrau port in the Caspian sea, to the Russian railways and to the south of Kazakhstan, further reaching Uzbekistan; • the district is electrified with the possibility of power supply expansion.

5

Field Geographical

location Knowledge Mineral resources

К2О

compoun

ds

Potash salt occurrence

depth Resources Notes

Inderskoye(Belaya

Rostosh)

At 18 km to the

east from

Inderborsky town

Inclosing structure-

salt table of

Indersky structure

(saline dome).

Salts of mixed

chloride-sulphate

composition

26,98% Occurs at the depth of

approx. 50-65 meters

SRC as of 01.01.2009

Category С2 – ore

29517 thou. t, К2О -

7963 thou. t

Detailed

exploration

Kruglyi At 100 km to the

north-west from

Inderborsky town

(West Kazakhstan

Chapayev district)

Mineral resources

masses were

opened by 13 wells

from 36.

Boron-potash salts 12-25% Lens-shaped masses,

capacity -1-9m,

occurrence depth - 394-

562 meters.

Approximate resources

of boron-potash ore -

187 mln.t, forecast

resources –more than

300 mln.t.

Preliminary

exploration

protecting the

resources of

category С1.

Lebyazhinckoye Extension of

“Kruglyi” dome

structure and

separated from it

by small salt balk

at the dome part

It was studied with

the “Kruglyi” dome.

Studied by six wells

Potash-potassic-

magnesium salts

Halogenic deposits were

opened at the depth of

500 meters.

Approximate resources

of potash-potassic-

magnesium salts

(ore) - 220 mln.t,

forecast resources- до

300 mln.t

Preliminary

exploration

protecting the

resources of

category С1.

Shugul At 64 km to the

east –north-east

from Inderborsky

town (West

Kazakhstan Tainak

district )

Inclosing structure-

Shugul saline dome

Studied by 13

wells.

Potash and boric

salts .

17-31% Saline deposits were

opened at the depth of

290 – 340 meters

К2О resources of

category С2 – 160 mln.

t, forecast resources–

150 mln.t

Preliminary

exploration

protecting the

resources of

category С1.

Summary Geological Description of the Fields

6

Taraz Kyzylorda

КKaraganda Makat Volgograd Warsaw

Aktau Baku

Poti Konstantsa

Rostov-on-Don–

Tegeran

Bukhara Сарахс

Bandar-Abbas

Istanbul Ankara

Urumchi Dostyk

Lanzhou

Almaty

Bandar-Anzali

Mumbai

Karachi

Astrakhan

Krasnaya Mogila

Up to Central China

Up to Kazakhstan

borders

Up to western ports of the Black

Sea

$90

$65 $24 $45

Possible logistical layouts and assessment of costs for delivery of cargos to the priority markets Possible versions of routes in priority

directions of export ratin

g

Europe

Atyrau– Aksaraiksaya – Krasnaya Mogila –Kiev –Varshava

Atyrau– Baku – Poti – Konstantsa

Atyrau – Astrakhan– Volgo-Donskoi Canal– Rostov-on-Don– Konstantsa

Turkey

Atyrau – Astrakhan– Volgo-Donskoi Canal– Rostov-on-Don – Istanbul

Atyrau – Baku – Poti – Istanbul

Atyrau– Tashkent – Bukhara –Sarakhs– Tegeran– Ankara

India

Atyrau – Tashkent – Bukhara – Chardzhou– Sarakhs– Bandar-Abbas – Mumbai

Atyrau – Aktau – Bandar-Anzali – Bandar-Abbas –Mumbai

Atyrau – Aktau – Baku – Poti– Mumbai

China

Atyrau– Dostyk– Urumchi – Lanzhou*

$90

Most favorable

Price for transportation in the direction, US Dollars for 1 ton of mineral fertilizers

Ratings of favorable directions

Railway

Navigable route

Priority markets

Kiev

* there is only one route with acceptable cost value to China

Logistics

7

Phosphorites and apatites of Kazakhstan Region The total amount of deposites (names) , appearances and promising

fields

West Kazakhstan 35 (Shilisaiskoe, Alginskoe, Novoukrainskoe, Bogdanovskoe, Koktyubinskoe, Pokrovskoe, Hersonskaya,Rodnikovskaya, Belogorskaya, Kara-Hobdinskaya, Esetskaya, Shibaevskaya, Timreiskaya, Bogdanovskaya, Sary-Hobdinskaya, Verhneuilskaya, Pokrovskaya, Koktyubinskaya, Shilisaiskaya, Zhurunskaya, Shubarkudukskaya, Temirskaya, kenkiyakskaya, Embinskaya, Airakty, Sharkala,Tushibek, shetpe, Hangababa, Tyubidjik,Zhalbart, Tauchi, foothills of south Ural, Karatauchik)

North Kazakhstan 31 (Dubrovskoe, Krasnomaiskoe, Barchinskoe, Marievskaya, Dragomirovskaya, Chkalovskaya, Zharkentskaya, Dubrovskaya, Zlatogorskaya, Pavlovskaya, Kanarskoe, Ayatskoe, Lisakovskoe, Shielinskoe, Kirovskoe, Zhanaaulskaya, Mezhozernoe, Mailysorskoe, Myrzambetskoe, Celinnoe, Dombralinskoe, Aksuyskoe, Shelekskoe, Seletinskoe, Akzharskoe, Shulaksandykskoe, Koksengirskoe; Uranium- phosphorus: Koksorskoe,Tastykolskoe, Zaozernoe, Terekskoe,Kerbaiskoe)

Central Kazakhstan 12 (Nugurbekskoe, Sarysaiskoe, Basaltuyait, Mirnoe, Atansor, Zhamankolskoe, Ementau, Seletinskoe,Shulasandykskoe, Vladimirskaya, Ishimskaya, Alekseevskaya)

South Kazakhstan 26 (Тamdy, Arbatas, Kotyebulak,Zhetimshoky, Chulaktau, Tesiktas, Chilibulak, Tiesai, Kyrshybakty, Aksai, Karashat, Akzhar, Ushbas, Koksu, Geres, Zhanatas, Gimmelfarbskoe, Zhilan, Kokdzhon, Kendyktas, Suukyubinskoe, Tekeliiskoe, Kazalinskoe, Syrdarinskoe, Chulaktauskoe, Mashatskoe)

East Kazakhstan 3 (Holzunskoe, Markakolskoe, Koitas)

8

Karatau phosphorite basin

Deposits with the largest reserves of phosphorite are mostly located in the Karatau phosphorite basin

Deposits are situated along the line with 120 km length

Width of the line is approximately 25-30 km

There are 46 phosphorite fields revealed, 15 of which are registered on the balance of state subsoil fund:

Chulaktau, Tesiktas, Tiesai, Kyrshybakty, Aksai, Karashat, Akzhar, Ushbas, Koksu, Geres, Zhanatas, Gimmelfarbskoe, Zhilan, Kokdzhon, Kendyktas, Suukyubinskoe, Tekeliiskoe, Syrdarinskoe (South Kazakhstan)

9

Overview of Karatau phosphorite basin

Explored reserves of phosporite ores that are on the balance is 4 billion. 279 millions tones with 1013,2 million tones of Р2О5 reserves

Phosphorite basin is piled with protezoic and paleozoic rocks

Total thickness of phosphorite beds varies from 0,5m to 35 m

Average concentration of phosphorus pentoxide in the balanced reserves is equal to 24,7%. (1,7-6,3 times higher than other CIS countries)

Phosphorites of Karatau are complicated in enrichment, ore dressing and refinery

The fields’ industrial ore pack thickness reaches 30 meters

All fields are spread on the flanks and are confined by discontinued breakings with significant displacements of separate blocks

10

UCC MASTER DEVELOPMENT PLAN

Gas

Oil & gas refinery

products

Basic organics including polymers

Bulk organic

basic

chemicals

(methanol,

lubricants)

Polymers

(polyethylene,

polypropylene)

High refined

low-tonnage

organic

chemicals

Basic inorganic including fertilizers

Fertilizers

(phosphates, potash,

nitrogen, complex)

Chemical elements

and their compounds

(chlorine, phosphorus,

etc)

Inorganic

acids

(sulfuric,

hydrochloric

)

Salt: potassium, sodium,

phosphorous ore

Nitrogen

compounds

(ammonia,

nitric acid)

Special and consumer chemicals

Industrial chemicals and

products (pesticides,

explosives, synthetic fibers,

paints, rubber, etc.)

Detergents

Alkali

(caustic

soda, soda

ash)

Synthetic

rubber in

initial forms

Oil Sulphur

11

United Chemical Company LLP

UCC was established on 21st of January, 2009, in pursuance of

the decree of the President of the Republic of Kazakhstan on

development of the chemical industry

One of the main tasks of the UCC is to support the

development of the chemical industry of the Republic of

Kazakhstan and increase its share in Gross National Product

UCC is an operator of the Governmental Programme of forced

industrial-innovative development of the chemical industry for

2010-2014

UCC activity is based on Master Development Plan made by

NEXANT (UK)

12

UCC state industrial policy involvement

•adoption of the state policy to industrial development

•programme of forced industrial-innovative development

• implementation control

Government of the Republic of Kazakhstan

• implementation of the state policy in a state assets management

•monitoring of subsidiary companies participating in implementation of the industrial policy

Sovereign Welfare Fund “Samruk-Kazyna” JSC

• implementation of the state policy in development of the chemical industry

UCC

100 %

100 %

13

Gas

Oil & gas refinery

products

Basic organics including polymers

Bulk organic

basic

chemicals

(methanol,

lubricants)

Polymers

(polyethylene,

polypropylene)

High refined

low-tonnage

organic

chemicals

Basic inorganic including fertilizers

Fertilizers

(phosphates, potash,

nitrogen, complex)

Chemical elements

and their compounds

(chlorine, phosphorus,

etc)

Inorganic

acids

(sulfuric,

hydrochloric

)

Salt: potassium, sodium,

phosphorous ore

Nitrogen

compounds

(ammonia,

nitric acid)

Special and consumer chemicals

Industrial chemicals and

products (pesticides,

explosives, synthetic fibers,

paints, rubber, etc.)

Detergents

Alkali

(caustic

soda, soda

ash)

Synthetic

rubber in

initial forms

Oil Sulphur

High-Priority Subsectors (NEXANT)

14

• Sodium cyanide production • Glyphosate production

• Construction of integrated petrochemical complex in Atyrau region: - I phase (polypropylene) - II phase (polyethylene) • Butadiene and polybutadiene rubber • Polymer production - BOPP film - polyethylene film - polypropylene bag • Construction of ammonia-urea complex

SEZ “Chemical park Taraz”

Map of investment projects

• Polymer production

Special economic zone “Morport Aktau”

• Sulfuric Acid Plant is under reconstruction with start-up in Q3 2013

Stepnogorsk, Akmolinskaya region

SEZ “Atyrau national industrial petrochemical park”

15

Integrated Petrochemical Complex (Phase I)

Total Project Cost: USD 2 030 mln.

Project Participants: UCC(51%), SAT&Co (49%)

Location: Atyrau Region

Production Capacity: PP – 500 KTA

Start-up: 2014

Key project advantages

Location in Special Economic Zone in Atyrau Region

near feedstock supplier gives fiscal benefits and

incentives

Best located to supply both European and Asian

markets

Competitive advantage via long-term access to low-

cost raw materials

Lummus Technologies – exclusive supplier of the

technology, one of the leading companies in the

market.

The Project demonstrates strong economic efficiency

16

Integrated Petrochemical Complex (Phase II)


Project Participants: UCC(25%), LG Chem Ltd. (50%),

Sat&Co (25%)


Production Capacity: PE – 800 KTA

Start-up: 2016




incentives


markets


cost raw materials

Lummus Technologies – exclusive supplier of the

technology, one of the leading companies in the

market.


17

Integrated Petrochemical Complex (Phase III)


Project Participants: TBD


Production Capacity:

PE– 800 KTA

MEG - 524 KTA

PP– 568 KTA

Polyols– 200 KTA

Benzene – 200 KTA

Butadiene – 169 KTA

Start-up: 2018


Location in Special Economic Zone provides fiscal

benefits and incentives

Advantageous location



cost raw materials

Perspective participation opportunities

FEED

EPC/EPCM

O&M

18

SEZ “Chemical park Taraz”


Government participation and support

The combination of raw material supply

The availability of industrial infrastructure

Advanced railway terminal

Proximity to the developed regions of country

Project demonstrates strong economic efficiency

Total Project Cost: USD 222,2 mln.

Project Participants: UCC (100%)

Location: Zhambyl Region


16 productions on release of the

wide assortment of chemical

products, including the first stage

of 4 production complexes

Start-up: 2014


FEED (ISBL infrastructure)

EPC (ISBL infrastructure)

19

Butadiene and Polybutadiene Rubber Production P




Production Capacity: Phase I - 229 KTA of butadiene

Phase II - 125 KTA of PBR

Start-up: 2017


High prices and demand for butadiene due to С4

deficit worldwide. 15 percent annual growth for

butadiene prices is forecasted for 2011-2017;



incentives.

Butane dehydrogenation technology – is

environmentally friendly proven and trusted

manufacture technology.

The Project demonstrates strong economic efficiency,

especially with Synthetic rubber production .

20

Polymer Production




incentives


cost raw materials

Proven and trusted manufacture technology


Total Project Cost: USD 84,9 mln.

Project Participants: UCC(90%), Propylene Pack LLP(10%)



PE film – 4 125 KTA

BOPP film – 14 738 KTA

PP bags – 48 mln per annum

Start-up: 2014

21

Sulfuric Acid Plant



markets


cost raw materials

Feedstock availability



Total Project Cost: USD 74 mln.

Project Participants: UCC (56%), other partners (44%)

Location: Stepnogorsk

Production Capacity: 180 KTA11

Start-up: 2013

22

Production of Yellow Phosphorus and

Thermic Ortho-Phosphoric Acid


Location in Industrial Zone with available

infrastructure (tariffs for water and electricity is

lower by 25% in Industrial zone)

Available plant area – 10 ha (RFS)

The proximity of major highways ("Western Europe -

Western China")

Availability of trade and logistics center in Shymkent

A system of ecological safety

Preliminary Project

Cost: USD 43 mln.

Project Participants: UCC(50%), RFS (50%)

Location: South-Kazakhstan Region

Production Capacity: Yellow Phosphorus - 12 KTA

Ortho-Phosphoric Acid – 24 KTA

Start-up: 2015


FEED

EPC

O&M

23

Sodium Cyanide Production


Assessment of the overall needs of the market in

Kazakhstan and Central Asia in 2015 was 34 000 tons

per year, including Kazakhstan's share - about 60% (20-

22 thousand tons per year). Growth of demand for

sodium cyanide is associated with plans to build

facilities for the extraction of gold in Kazakhstan and

the region. Currently, demand is covered entirely by

imports

Location in Special Economic Zone in Zhambyl Region


incentives



Total Project Cost: USD 126.5 mln.



Production Capacity: 25 KTA

Start-up: 2014

24

Production of Glyphosate (Herbicide)


Government input in the form of infrastructure

development

Location in Special Economic Zone in Zhambyl Region


incentives


cost raw materials



Total Project Cost: USD 264 mln.

Project Participants: UCC(99.9%), SK-Invest (0.1%)



Glyphosate – 10 KTA (95% )

Caustic soda – 40 KTA

Phosphorus trichloride – 13.6 KTA

Calcium Chloride – 30 KTA

Start-up: 2015

25

Спасибо за внимание! Республика Казахстан, г. Астана, 100008 пр. Республики, 34, офис № 245, 234, 233 тел.: 8 (7212) 56-56-56, 56-56-55 факс. 8 (7212) 56-56-54

26

kazakhstan chemical industry overview · its halogenous formation is defined by most complete...

Documents