Investment Projects

Construction of a plant for the production of base oil components in the West Kazakhstan region

  • Indicator Results
  • Investment amount, thousand US dollars 820 744
  • NPV of the Project thousand, US dollars 266 538
  • IRR, % 17,01%
  • IBITDA yield, % 58-63%
  • Payback period, years 8,2
  • Discounted payback period, years - - 13,8

Project Description:

Construction of a plant for the production of base oil components from natural gas

Raw material:

natural gas – 1.0 billion rubles. norm. cubic meters per year

Products and capacities:

  • 280 thousand tons of base oil components (paraffin) per year;
  • 110 thousand tons of diesel fuel and gasoline fractions per year;
  • 10 thousand tons of liquefied petroleum gas per year.
Sales market:

China, EU countries, Kazakhstan

Tax payments during the operation of the Project (2022-2042):

CPN – US $ 618 million; Other taxes, fees and deductions – US $ 66 million; OPV – US $ 34 million.

Market prerequisites:

Growing demand.

According to a report by Grand View Research, Inc., the global base oil market is expected to reach $ 40.47 billion by 2024. The growing demand for base oils is a key driving factor for the growth of demand for the Project's products.

The presence of a client base.

The patent holder of the technology of gas-chemical production of base oil components is the Chinese corporation Shanxi Lu'an Group (a minority shareholder of Cathay Biotech). The main part of the base oil components will be sent directly to the Shanxi Lu'an Group plant located south of Shanghai, as well as to the EU countries. The fractions of gasoline and diesel fuel can be used in its production cycle by the group of companies "Condensate" or other refineries of the country.

The availability of a raw material base.

The reserves of the Karachaganak oil and gas condensate field amount to 1.35 trillion cubic meters of gas and 1.2 billion tons of oil and gas condensate. The resources of this field in the amount of 8.5 billion cubic meters per year are processed at the Orenburg Gas Processing Plant and consumers of the West Kazakhstan Region have a priority right to purchase natural gas obtained from these resources.


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