Kazakhstan is transitioning its oil and gas sector towards high-value-added production, prioritizing petrochemicals as a key national strategy. During a government meeting on May 5, Energy Minister Yerlan Akkenzhenov unveiled a roadmap for 2024–2030.

Source: AstanaTimes

The roadmap encompasses six significant projects, with an estimated cost of around $15 billion. These initiatives are anticipated to generate approximately 3,500 permanent jobs and 16,000 temporary positions.

In 2024, petrochemical production reached 540,000 tons, reflecting a 50% increase from the previous year. The launch of a new paraxylene production unit at the Atyrau oil refinery in March contributed an additional 33,800 tons to this output, as reported by the Prime Minister’s press service.

Key infrastructure developments are underway at the National Industrial Petrochemical Technopark, which has 18 registered projects, including the production of polypropylene, polyethylene, and synthetic rubber.

Akkenshenov highlighted that major upcoming projects include the establishment of polyethylene, PET, alkylate, and urea plants, with anticipated launches between 2027 and 2029.

Additionally, the government is working on a new law for the petrochemical industry aimed at ensuring equitable access to raw materials and implementing tax and financing support measures.

Prime Minister Olzhas Bektenov emphasized the importance of the chemical industry in bolstering agriculture, mining, metallurgy, and construction.

In 2024, chemical production experienced a growth of 7.7%, while petrochemical production surged by over 50%. Exports of chemical products surpassed $2 billion, marking a 13% increase from 2023. Growth continued into January-March, with the sector expanding by 12.5%.

Kazakhstan currently has 12 major chemical and petrochemical plants, including the largest polypropylene facility in Central Asia located in Atyrau. The construction of a polyethylene plant, the nation's largest industrial project, is in progress. Other notable projects include the production of sodium cyanide, ammonium sulfate, butadiene, urea, and PET.

The government aims to attract private investment, enhance the investment climate, and pass a law concerning the petrochemical sector by September.

KazMunayGas Accelerates Petrochemical Development in Kazakhstan

Asset Magauov, deputy chief executive officer of KazMunayGas (KMG), reported significant advancements in Kazakhstan's petrochemical sector, which is a priority for diversifying the national economy.

The KPI polypropylene plant, operational since late 2022, has increased its output by 73% year-on-year in January-March, reaching 126,000 tons. Annual production is projected to hit 486,000 tons. Since its launch, polypropylene exports have surged ninefold, while domestic consumption is rising due to KMG’s discount program, which supports local manufacturers.

The construction of an $11 billion polyethylene plant is progressing, alongside essential infrastructure. Local engineering capabilities are improving through equipment contracts and training programs in collaboration with universities and the Spanish firm Técnicas Reunidas.

Two new projects are in the design phase: a $1.2 billion urea plant and a polyethylene terephthalate (PET) plant aimed at reducing import reliance.

KMG is also advocating for greater polymer usage, enhancing standards, and addressing uncertified imports. Bitumen production capacity has expanded to 1.25 million tons, fully satisfying domestic demand.

Digital systems, including robotic warehouses, are being implemented across various facilities.