Borealis AG and Kazakh state-owned partner United Chemical Co. LLP (UCC) have canceled plans for joint development of an integrated ethane cracker and polyethylene (PE) project in Kazakhstan.
The decision to discontinue the project is based on a thorough assessment of all aspects of the proposed venture, including near-term impacts of the coronavirus (COVID-19) health crisis as well as the pandemic’s role in increasing uncertainty of future market assumptions, Borealis said in a statement.
Cancellation of the project follows a 2018 joint development agreement signed by Borealis and UCC, under which the partners planned to build an ethane cracker and two PE units based on Borealis' proprietary Borstar PE process at the proposed Kazakhstan complex, which would have an overall production capacity of 1.25 million tonnes/year, Borealis said in a Mar. 26, 2018, release.
The project—which, if approved, was scheduled for startup in 2025—was due for final investment decision this year, according to Borealis.
