UPDATE 1-China Sinopec wins $1 bln Kazakh refinery contract

* Sinopec unit to build new facility at Kazakh refinery

* Project valued at $1 billion (Adds details, background)

ALMATY, Oct 27 (Reuters) - A subsidiary of China's Sinopec (0386.HK) will sign a deal this week to build a new processing facility at Kazakhstan's Atyrau oil refinery, Kazakh state energy firm KazMunaiGas said on Tuesday.

"Investment in the project will total $1.04 billion," it said in a statement, adding that the deal would be signed on October 29.

The new facility would allow Atyrau refinery to extract benzene and other chemical compounds from oil and market them while improving the quality of produced gasoline, KazMunaiGas said.

State-run Sinopec is Asia's largest refiner and a major producer of chemicals such as ethylene. (Writing by Olzhas Auyezov)