«Kazakhstan Petrochemical Industries Inc.»
(«Казахстан Петрокемикал Индастриз Инк.»)
Limited Liability Partnership

Increasing the life cycle and combating counterfeiting of pipeline systems in Kazakhstan is the key topic of round table discussion between SIBUR and KPI

26 April
Increasing the life cycle and combating counterfeiting of pipeline systems in Kazakhstan is the key topic of round table discussion between SIBUR and KPI
A round table was held in Astana on the prospects for the development of polymer pipeline systems and regulatory actions to increase the life cycle of pipelines. The event was organized by Russia's leading petrochemical company SIBUR and Kazakhstan's first integrated petrochemical complex for the production of polypropylene, KPI. The event was attended by representatives of SIBUR, "KPI", "KazMunaiGas", the Ministry of Energy of the Republic of Kazakhstan, Atameken National Chamber of Entrepreneurs of the Republic of Kazakhstan, as well as leading manufacturers of pipeline systems of the Republic of Kazakhstan and associations.

The main agenda of the round table was focused on mechanisms for increasing the service life of pipeline systems in construction and housing and utilities sector in Kazakhstan through the use of polymer materials and regulatory restrictions on the use of counterfeit products.

Demand for pipeline systems fr om construction and infrastructure projects is expected to grow in Kazakhstan by 2030. According to Arthur Consulting estimates, annual construction growth could reach 1.5%, with housing stock growth of 22% by 2030. In poorly gasified regions in the north-east of the country, wh ere the gasification rate does not exceed 30%, the gas distribution network is being actively laid.  Due to this, polymer consumption in external pipeline networks - water supply and sewerage, gas and heat supply - can grow twiced more than 160 thousand tons per year. Consumption of polymers in domestic pipes may increase by 30% to 42 thousand tons per year, in pipes for land reclamation - 2.1 times to 72 thousand tons per year.

Polymer pipes are highly resistant and have a lower carbon footprint than traditional materials. Thanks to the use of polyethylene pipes, the service life of pipeline systems is multiplied, the cost of their installation is reduced and the speed of installation is increased. It is worth noting the high resistance of polymer pipes to aggressive media, which reduces the level of accidents and positively affects the efficiency of pipeline systems throughout the life cycle.

Today, a significant part of polymer pipes consumed in Kazakhstan is produced by local processors represented by 90 companies. At the same time, the raw material for pipe production - polyethylene - is fully imported. Quality control of polymer pipes is limited by the lack of standards that clearly describe the requirements for the raw materials used.

Up to 90% of pipes produced in Kazakhstan are classified as counterfeit. A third of pipe systems are produced by adding carbon black during extrusion of finished products. Up to 25% of polyethylene used in pipe production is of grades unsuitable for this type of products. Thus, the resistance of pipeline systems to external impact, their impact resistance and, as a consequence, the period between repairs and the service life of pipes is reduced.

Within the round table the participants discussed the possibilities of developing a system of anti-counterfeiting based on the current legislation of Kazakhstan. One of the solutions to limit the use of counterfeit products in the production of pipeline systems could be mandatory digital marking of pipes. This tool is widely used in the EU, USA, China, and has recently been introduced into the Russian Federation. Polymer processors also discussed the possibility of creating an industry association of the Republic of Kazakhstan to represent the interests of producers in the state bodies of the Republic of Kazakhstan, including the development and harmonization of norms for the production of polymer pipelines.
Reference information

SIBUR is one of the most dynamically developing companies in the global petrochemical industry, the Russian leader in the production of polymers and rubbers.
The company produces in-demand products for society and uses advanced technologies to create new opportunities, invests in social infrastructure, and improves the quality of life of people. SIBUR develops through partnership and sharing of experience, continuous growth, movement towards ambitious goals and commitment to sustainable development principles. SIBUR's unique vertically-integrated business model enables it to create highly competitive products that are used in many sectors of the economy around the world: construction, food industry, medicine and pharmaceuticals, agriculture, automotive and others.

Over the past 15 years, SIBUR has invested more than 1.5 trillion rubles in the development of the domestic petrochemical industry, the creation of new and modernization of existing production facilities.

KPI — ("National Company "KazMunayGas" JSC has a stake in this LLP) was launched on November 8, 2022 and is the first-born petrochemical complex for the economy of Kazakhstan. The Head of State Kassym-Jomart Tokayev gave a start to the work of the enterprise during his visit to the Atyrau region.  The output of the plant at full capacity of 500 thousand tons of products per year will put it on a par with the largest players in the global polypropylene production market.