Kazakhstan Launches $15 Billion Investment Plan to Accelerate Petrochemical Industry Development

Kazakhstan is vigorously promoting the development of the oil and gas industry towards high added value, and has listed petrochemical products as a national economic strategic priority. Energy Minister Yerlan Akkenzhenov detailed the petrochemical industry development roadmap from 2024 to 2030 at a government meeting on May 5.

The roadmap involves six major petrochemical projects with a total investment of approximately $15 billion, which is expected to create approximately 3,500 permanent jobs and 16,000 temporary jobs. Among them, the new paraxylene unit of the Atyrau Refinery, which was put into operation in March this year, will increase production by 33,800 tons per year, providing more raw material support for downstream products.

In the National Industrial Petrochemical Science and Technology Park, key infrastructure is being accelerated, and 18 projects such as polypropylene, polyethylene, and synthetic rubber have been registered to enter the park. Akkenzhenov said that the core projects in the future include polyethylene, PET (polyethylene terephthalate), alkylate and urea plants, which are planned to be put into production between 2027 and 2029.

The government is accelerating the formulation of a new petrochemical industry law to ensure fair access to raw materials and provide tax incentives and financing support to attract more private investment and optimize the investment environment. The law is expected to be reviewed by September this year.

Prime Minister Olzhas Bektenov stressed that the chemical industry is a key link in supporting multiple industries such as agriculture, mining, metallurgy and construction. Data show that in 2024, Kazakhstan's chemical production will increase by 7.7% year-on-year, and petrochemical products will increase by more than 50%. In 2023, the export value of petrochemical products reached US$2 billion, a year-on-year increase of 13%. In the first quarter of 2025, the industry continued to maintain its growth momentum, an increase of 12.5% year-on-year.

At the meeting, Asset Magaouf, deputy CEO of Kazakhstan National Oil Company (KMG), said that the development of the petrochemical industry is a priority direction for achieving national economic diversification. Since it was put into operation at the end of 2022, the capacity of KPI's polypropylene plant has continued to increase. In the first quarter of 2025, the output increased by 73% year-on-year to 126,000 tons, and the annual output is expected to be 486,000 tons. The export volume of polypropylene has increased ninefold, and domestic consumption has also increased significantly thanks to KMG's discount policy, which effectively supports the development of local manufacturing.

In addition, KMG is building an $11 billion polyethylene plant and its key supporting infrastructure. The company has made progress in equipment procurement and talent training in cooperation with Spain's Técnicas Reunidas and domestic universities, and has improved local engineering capabilities.

In terms of new projects, two plants are in the design stage: one is a urea plant with an investment of $1.2 billion, and the other is a PET plant for import substitution. KMG is also actively promoting the widespread application of polymer products, improving national standards, and strengthening the supervision of uncertified imported products. Asphalt production capacity has been expanded to 1.25 million tons, which can meet all domestic needs.

In order to improve operational efficiency and technical level, several plants are introducing digital systems, including robotic warehouses, to promote the transformation of smart manufacturing.