Butadiene and Its Derivatives Production Plant (Updated)
PROJECT ID
50520256
SECTOR
Oil & Gas, Chemicals & Petrochemicals
PROJECT PHASE
Procurement & Construction
LOCATION
Atyrau Region, Kazakhstan
START DATE
11/2/2022
END DATE
1/1/2029
INVESTMENT VALUE
$ 1000 M
Active
Verified
Last Updated: 25 April 2026
Publication: 1 April 2026
PROJECT DESCRIPTION
The Butadiene Project is a major petrochemical development aimed at establishing large-scale production of butadiene and synthetic rubber derivatives in Kazakhstan. The project is being implemented by Butadien LLP, a subsidiary of Samruk-Kazyna Ondeu, which belongs to the sovereign wealth fund Samruk-Kazyna. The complex will process butane feedstock to produce butadiene and downstream products including styrene-butadiene rubber (SSBR) and styrene-butadiene-styrene elastomers (SBS). These materials are widely used in tire manufacturing, polymers, adhesives, and industrial rubber products. The facility will include units for butane separation, ... Read more
Involved Companies & Contacts
INVOLVED COMPANIES & CONTACTS
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Location
Locations shown on the map are for indicative purposes and may vary from actual locations.
Other important details
The project’s main challenges included the withdrawal of its original Russian partner Tatneft, the need to restructure EPC contracts, adjustments in financing and cost estimates, and schedule delays. These issues ultimately led to the selection of Sinopec’s engineering subsidiaries as the new EPC contractors, allowing the project to proceed under a revised partnership structure.
The EPC contractors for the project are GPEC (Guangzhou Engineering) for the butane separation unit, isobutane dehydrogenation unit, butadiene extraction unit, utility facilities, etc., and SNEC (Ningbo Engineering) for the SBS elastomer (SBS) production project, and the production of solution styrene-butadiene rubber (SSBR).
On November 2-3, 2022, early construction and installation work began at the construction site of the future Plant as part of the "Butadiene and its Derivatives Production" project.
The project is located within Kazakhstan’s main petrochemical cluster in the Atyrau region.
Feedstock (butane) is expected to be supplied from the Tengiz oil and gas field operated by Tengizchevroil.
The facility will produce several petrochemical products including butadiene, SBS elastomers, and SSBR rubber, which are essential materials for the tire and polymer industries.
The project supports Kazakhstan’s strategy of moving from crude hydrocarbon exports toward higher-value petrochemical manufacturing.
The plant will contribute to the development of downstream chemical industries and export-oriented production.
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