Kazakhstan's largest chemical project under construction has moved another step forward. According to a progress update from KazMunayGas (KMG) on 30 September, overall completion at the Silleno polyethylene plant in Atyrau region has passed 39%, and work is following the approved schedule. The plant is owned by KMG, China's Sinopec and Russia's SIBUR. Sinopec is one of the three main shareholders, and its engineering arms sit in both of the project's main EPC contracts.
Where construction stands
KMG says work is running in parallel at the pyrolysis unit, the polymerisation unit and the plant-wide utilities. The pyrolysis unit, which turns ethane into ethylene, is the heart of the plant. Foundations for its buildings, equipment and pipe racks are 73% complete, steel erection and process-pipe prefabrication are under way, and furnaces and cryogenic tanks are being installed. At the polymerisation unit and utilities, piling is 88% done, with foundation work following.
The first major piece of process equipment is now in place: a 101.8-metre ethylene fractionation column built at the AtyrauNefteMash plant in Atyrau. Citing KMG, the Atyrau newspaper Ak Zhaiyk and the trade outlet Neftegaz.ru reported in September that the column is 7.5 metres in diameter and weighs about 1,500 tonnes, and that a crawler crane with a lifting capacity of up to 4,000 tonnes was assembled on site to raise it. More than 5,000 workers and over 500 pieces of specialised equipment have been mobilised.
The year's updates show steady progress. In February, Plastinfo, citing a Silleno press release, put completion at about 22%. KMG reported more than 34% at the end of July, Neftegaz.ru cited 36% for August, and the figure passed 39% by the end of September.
Getting the heavy equipment in
The first sea shipment for the pyrolysis unit comprised nine items, including reactors, separators and columns, weighing about 12,000 tonnes in total. According to KMG, the cargo arrived by sea at the port of Ersai in Mangystau region and was then moved 878 km overland on special transporters, in two stages in July and September. For heavy-lift and project logistics companies, the route of a Caspian port followed by a long road haul has now been tested in practice.
Key facts about the plant
The plant is being built in the Karabatan industrial zone of the National Industrial Petrochemical Technopark special economic zone in Atyrau region. Design capacity is 1.25 million tonnes of polyethylene a year, which Silleno puts at about 1% of global output. It will use about 1.6 million tonnes of ethane a year. The ethane will be separated at a gas separation complex KMG is building, from gas produced at fields operated by Tengizchevroil, and delivered through a trunk pipeline that KMG is also building. Silleno's website gives the implementation period as 2022 to 2029, and KMG and trade media also point to a 2029 start-up.
Rules related to this news
The plant is planned to make more than 20 grades of high-density polyethylene (HDPE) and linear low-density polyethylene (LLDPE) for pipes, film, packaging, containers and car parts. According to Silleno and KMG, target markets are Kazakhstan, CIS countries, Europe, China and Turkey.
Where Chinese companies fit in
KMG and its subsidiary KMG PetroChem together hold 40%, Sinopec Overseas Investment Holding holds 30% and SIBUR 30%. Sinopec formally became a shareholder in spring 2024; Sinopec Group's website said at the time that the deal had closed in Astana.
Both main EPC contracts involve Sinopec group companies. The ethane cracker is being built by a consortium of Sinopec Engineering (Group) and Spain's Técnicas Reunidas under a contract signed in September 2024. In a Hong Kong stock exchange filing, Sinopec Engineering put the contract value at about US$2.5 billion, split 50/50 between the partners. The polymerisation unit, together with utilities, infrastructure and offsite facilities, is being built by a consortium of Italy's Tecnimont and Sinopec Shanghai Engineering. Process technology comes from Lummus (US) for the cracker, Chevron Phillips Chemical and Univation (US) for polymerisation, and Axens (France).
At the end of July, KMG Chairman Askhat Khassenov met Sinopec Group Chairman Hou Qijun in Beijing, where the two sides reviewed the project. In its press release, KMG said Sinopec's trading and logistics network would help the plant's future output reach markets in Southeast Asia and China.
What it means for Chinese companies
With roughly three years to go before the planned start-up, demand for subcontracting, equipment and materials, and heavy-cargo transport will be concentrated in this period. Once running, the plant will give Kazakhstan its first domestic polyethylene capacity on a million-tonne scale. Pipe, film and packaging makers will be able to source feedstock nearby, which Chinese companies considering a plant in Kazakhstan may want to factor into site selection and cost planning.
Some points remain unclear. Public estimates of the project's total cost differ, product pricing and sales arrangements have not been disclosed, and the start-up date should be checked against future official statements from KMG and Silleno.
Sources:
KMG (30 September 2026), https://www.kmg.kz/ru/press-center/press-releases/polietilen-status/
Hydrocarbon Processing (1 October 2026), https://www.hydrocarbonprocessing.com/news/2026/10/kazmunaygas-125-mmtpy-pe-project-in-atyrau-nearly-40-complete/
Trend (30 September 2026), https://www.trend.az/casia/kazakhstan/4229542.html
Silleno website, About the project, https://silleno.kz/?lang=en&page_id=412
KMG, Polyethylene Project page, https://www.kmg.kz/ru/company/projects/all/proekt-polietilen/
KMG (31 March 2025), https://www.kmg.kz/en/press-center/press-releases/pervye-svai-polietilen-zavod/
KMG (31 July 2026), https://www.kmg.kz/ru/press-center/press-releases/i-sino/
Neftegaz.ru (via NANGS, 9 September 2026), https://nangs.org/news/downstream/chem/12-tys-tonn-oborudovaniya-silleno-zavershilo-dostavku-pervoj-partii-dlya-zavoda-polietilena
Ak Zhaiyk (10 September 2026), https://azh.kz/ru/news/view/132039
Plastinfo (25 February 2026), https://plastinfo.ru/information/news/56640_25.02.2026/
Sinopec Group (22 April 2024), http://www.sinopecgroup.com/group/000/000/049/49274.shtml
HKEXnews, Sinopec Engineering announcement (22 September 2024), https://www1.hkexnews.hk/listedco/listconews/sehk/2024/0922/2024092200104_c.pdf
Interfax (1 September 2025), https://interfax.com/newsroom/top-stories/113549/
Key facts
- The overall progress of the Silleno polyethylene plant in Kazakhstan has exceeded 39%.
- The Silleno polyethylene plant has a designed annual capacity of 1.25 million tonnes and is scheduled to start production in 2029.
- Sinopec holds a 30% equity stake in the Silleno polyethylene project.
- The cracking, polymerization, and plant-wide utilities systems for the Silleno project are being constructed simultaneously.
- The Silleno polyethylene plant is planned to produce more than 20 grades of high-density polyethylene and linear low-density polyethylene.
- KMG stated that Sinopec's trading and logistics network will help the products gain access to Southeast Asian and Chinese markets.
FAQ
What is the current progress of the Silleno polyethylene project?
KMG reported on September 30 that the project's overall progress had exceeded 39%. Construction is proceeding according to the approved schedule, with production scheduled to start in 2029.
What is Sinopec's equity stake and engineering involvement?
Sinopec holds a 30% stake, and its engineering company is separately participating in the two EPC general contracts for the ethane cracking unit and the polymerization and utilities.
What products will the Silleno polyethylene plant produce, and what will they be used for?
The plant has a designed annual polyethylene production capacity of 1.25 million tonnes. Its products will include more than 20 grades of high-density polyethylene and linear low-density polyethylene for applications such as pipes, films, packaging, containers, and automotive components.
Where will the ethane feedstock for the Silleno polyethylene plant come from?
Ethane will be extracted from natural gas from the TengizChevron-operated oil field by KMG's gas separation facility, which is under construction, and then transported to the plant through a new KMG-built pipeline.
What other information about the project remains unclear?
Publicly disclosed figures for the project's total investment are inconsistent. Product pricing and sales arrangements have not yet been announced, and the final start-up date remains subject to subsequent official announcements from KMG and Silleno.