ASTANA – Kazakhstan is shifting its oil and gas sector toward high-value-added production, focusing on petrochemicals as a strategic national priority. Energy Minister Yerlan Akkenzhenov has introduced a roadmap for 2024–2030 during a May 5 government meeting.
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The roadmap includes six major projects worth approximately $15 billion. These developments are expected to create around 3,500 permanent and 16,000 temporary jobs.
In 2024, petrochemical production reached 540,000 tons — up 50% from the previous year. A new paraxylene production unit launched at Atyrau oil refinery in March added 33,800 tons to the output, reported the Prime Minister’s press service.
Key infrastructure is being built in the National Industrial Petrochemical Technopark, with 18 registered projects including polypropylene, polyethylene, and synthetic rubber production.
According to Akkenzhenov, major future projects include polyethylene, PET, alkylate, and urea plants, with launches expected between 2027 and 2029.
The government is also drafting a new law on the petrochemical industry to ensure fair access to raw materials and introduce tax and financing support measures.
Prime Minister Olzhas Bektenov underlined that the chemical industry is vital in supporting agriculture, mining, metallurgy, and construction.
In 2024, chemical production grew by 7.7%, while petrochemicals surged by over 50%. Exports of chemical products exceeded $2 billion, up 13% from 2023. Growth continues in January-March, with the sector expanding by 12.5%.
Kazakhstan now has 12 major chemical and petrochemical plants, including the largest polypropylene facility in Central Asia, located in Atyrau. Construction of a polyethylene plant, the country’s largest industrial project, is underway. Other key projects include sodium cyanide, ammonium sulfate, butadiene, urea, and PET production.
The government aims to attract private investment, improve the investment climate, and pass a law on the petrochemical sector by September.
KazMunayGas accelerates petrochemical development in Kazakhstan
Asset Magauov, deputy chief executive officer of KazMunayGas (KMG), reported on significant progress in Kazakhstan’s petrochemical sector, a priority area for diversifying the national economy.
The KPI polypropylene plant, operating since late 2022, has increased output by 73% year-on-year in January-March, reaching 126,000 tons. Annual production is expected to reach 486,000 tons. Since the launch, polypropylene exports have increased ninefold, and domestic consumption is rising owing to KMG’s discount program, supporting local manufacturers.
Construction of a $11 billion polyethylene plant is underway, alongside key infrastructure. Local engineering capacity is growing through equipment contracts and training programs in partnership with universities and Spanish firm Técnicas Reunidas.
Two new projects are being designed: a $1.2 billion urea plant and a polyethylene terephthalate (PET) plant to reduce import dependence.
KMG is also promoting wider use of polymers, upgrading standards, and cracking down on uncertified imports. Bitumen capacity expanded to 1.25 million tons, fully meeting domestic demand.
Digital systems, including robotic warehouses, are being introduced across facilities.
