Kazakhstan's Petrochemical Shift: From Raw Exporter to Polymer Producer

Kazakhstan is fundamentally transforming its oil and gas sector, moving away from a traditional raw material export model towards deep processing and the implementation of strategic investment projects across the country.

A landmark achievement in this direction was the 2022 launch of the first integrated gas chemical complex, KPI, in Atyrau. The facility produces polypropylene with an annual capacity of 500 thousand tons. Since its commissioning, it has manufactured over 800 thousand tons of product, including 375 thousand tons in 2025 alone. Currently, the KPI plant already satisfies 83% of domestic polypropylene demand, significantly reducing import dependence.

In parallel, a plant for the production of methyl tert-butyl ether (MTBE) with a capacity of 57 thousand tons was commissioned in Shymkent in 2021. This facility meets domestic market needs and provides export potential.

The industry's development continues through a portfolio of strategic projects under special oversight by the Ministry of Energy.

A polyethylene production plant with a capacity of 1.25 million tons per year is now under active construction. Its launch, scheduled for 2029, is critically important for the economy as Kazakhstan currently relies entirely on imports to meet its domestic polyethylene consumption.

Another project under construction is an alkylate production unit with a planned capacity of 100 thousand tons and a target launch date in 2027.

Two more major facilities are currently in the design phase: an urea (carbamide) production complex with an annual capacity of up to 800 thousand tons and a butadiene production project with a capacity of up to 340 thousand tons per year. The commissioning of these capacities is planned for 2029.

It is important to emphasize that polypropylene and polyethylene are fundamental materials for thousands of everyday goods and industrial applications. Polypropylene is widely used in the food industry for heat-resistant containers and packaging, in medicine for disposable syringes and masks, as well as in automotive manufacturing and construction for high-strength parts and hot water supply pipes.

Polyethylene, in turn, is an indispensable material for creating flexible packaging, films, super-strong containers for household chemicals, cable insulation, and durable pipes for gas and water supply networks. Developing domestic production of these polymers not only covers local market demand but also creates a raw material base for hundreds of small and medium-sized businesses that manufacture finished products from domestic polymer granules.

To systematically support these initiatives, the Ministry of Energy adopted a Roadmap for the Development of the Petrochemical Industry until October 2030. Furthermore, work is underway to develop a specialized Law "On Petrochemical Industry," which will legally enshrine mechanisms to ensure projects have access to necessary raw materials. This legislation aims to create a foundation for new processing stages and the formation of a full-fledged petrochemical cluster within Kazakhstan.