OREANDA-NEWS. February 22, 2011. At the Atyrau Polyethylene Pipe Plant (APPP), owned by “Chevron”, there was a ceremony of starting a production of compositive reinforced-plastic pipes, used in heating and hot water supply systems. Expansion of the Plant capacity and commissioning of technically advanced manufacturing, which has no analogues in Kazakhstan and CIS countries, is part of a program to reinvest the part of Chevron’s profit in Kazakhstan.

- Starting a production at the APPP will motivate native manufacturers to expand their list of goods manufactured, to open new productions and to create additional jobs, - Kairgeldy Kabyldin, Chairman of the Board, JSC NC “KazMunayGas”, noticed at the ceremony.

Nameplate capacity of the new manufacturing is 2 thous. t. of pipes 12-110 mm in diameter per annum. Reinforced-plastic pipes do not suffer corrosion and are resistant to corrosive environment, proposing an optimum alternative to metal pipes. Their estimated service life is 50 years.

Expansion of production of the Atyrau Polyethylene Pipe Plant up to 17 thous. pipes per annum will reduce imports of similar products from far abroad.

Over a number of years “Chevron” company is the partner of JSC NC “KazMunayGas” in the largest oil and gas project in Atyrau region – “Tengizchevroil”.

Successful implementation of the capacity expansion projects (Second Generation Plant/Sour Gas injection) not only allowed increasing oil production, but also promoted the development of sustainability of the Kazakh suppliers, creation of a Joint Venture between Kazakhstan and foreign enterprises.

NC KMG works actively on development of local content and increasing the share of Kazakh manufactures in volume of purchases.

At the end of 2010 the total volume of purchases in the Group of KMG companies amounted to 1,595.2 bln. Tenges, the local content in purchases comprising 51% or 811 bln Tenges. Particularly, there are a number of contracts concluded with enterprises of Atyrau region amounting to 223 bln tenges, which is 14% of the total volume of purchases.