CNPC will cooperate with Kazakhstan to build a $1.25 billion petrochemical project
Thread Content
A report on July 15 stated that an investment agreement for the construction of a urea plant was signed between Kazakhstan’s Ministry of Energy, KazMunayGas, China National Petroleum Corporation (CNPC), and the government of Aktobe region. According to the Kazakh Ministry of Energy, this project will become one of the largest joint ventures between Kazakhstan and China in the petrochemical sector. This is a vivid manifestation of the strategic partnership between the two countries, aimed at achieving **economic diversification, developing agro-industrial complexes, and enhancing food security. The investment agreement reached agreements on key issues related to the implementation of the project, including raw material supply, preliminary project work, the initiation of feasibility studies, and the allocation of land within the Aktobe Special Economic Zone. The project is planned to be implemented at the Zhanazhol gas processing plant in Kazakhstan. This natural gas processing plant will serve as a raw material supply base, with a plan to supply 600 million cubic meters of commercial natural gas per year. The project is expected to have an annual production capacity of 800,000 tons, with an investment of around $1.25 billion. The construction phase is projected to create 3,000 new jobs, while the factory’s operation is expected to generate approximately 400 additional jobs. The Ministry of Energy of Kazakhstan stated that the implementation of the project will make a significant contribution to the development of the domestic gas chemical industry, the assurance of food security, and the enhancement of export potential in Kazakhstan.
Kazakhstan and China National Petroleum Corporation (CNPC) will jointly build the country’s first urea plant with a high nitrogen content, filling a gap in the local market and supporting the advancement of agriculture as well as the expansion of exports. The cooperation agreement was officially signed. The urea plant project is located in the Mugarzhar District of Aktobe Region, within the Aktobe Economic Special Zone, adjacent to the Zhanarzor gas processing plant. China and Kazakhstan – including Kazakhstan’s Ministry of Energy, the oil company KazMunayGas (KMG), CNPC, and local governments – jointly signed a framework agreement to provide policy support, land allocation, and raw material guarantees for the project. The Zanaor Gas Plant will supply 600 million cubic meters of gas per year, providing a stable source of raw material for the plants. The total investment in the project is 1.25 billion dollars, with completion and operation expected by 2029. The construction phase will create 3,000 jobs, while operations will offer 400 long-term employment opportunities. Agriculture drives the increase in demand for fertilizers. Kazakhstan has around 35 million hectares of arable land, and its agricultural development relies on the supply of nitrogen fertilizers. However, the country has long lacked domestic urea production capacity and relies entirely on imports. According to KMG’s estimates, Kazakhstan’s urea demand is expected to reach 300,000 tons by 2029. Once the project is operational, it will meet all of the country’s domestic needs, with the surplus being exported to Europe, India, and Turkey. During the project’s testing phase, cooperation was established with the **Academy of Sciences directly under the President to conduct agricultural application tests in four states; the results showed that urea with a high nitrogen content (up to 46%) had stable quality and met international standards. Deepening China-Kazakhstan capacity cooperation: This project is defined by both sides as “one of the largest joint ventures between China and Kazakhstan in the petrochemical sector”. It is not only a demonstration of the local conversion of natural gas resources, but also reflects the trend of transformation in the relationship between the two countries, from resource-based cooperation to more advanced processing. It is worth noting that this is another example of China’s expansion in infrastructure and manufacturing in Kazakhstan. In July this year, a Chinese company announced plans to invest $10 billion in building a tetrapackaging plant in Almaty, further demonstrating the growing interest of Chinese investors in industrial projects in Kazakhstan. For details, see “10 Billion Dollars!” China invests in a factory in Almaty, Kazakhstan, to boost high-end manufacturing in Central Asia. As the bilateral trade volume between China and Kazakhstan exceeds 44 billion US dollars, the urea project, which integrates energy and agriculture, marks a new phase in their cooperation characterized by joint industrial development, providing strong support for the modernization of agriculture and the diversification of Kazakhstan’s exports.
【Haichuan: Lessons from Others】Utilize new technologies to build intelligent water management platforms and reduce leaks! https://bbs.hcbbs.com/thread-5697023-1-1.html (Source: Haichuan Chemical Industry Forum)
【Frontiers of HaiChuan Chemical Technology】Turning carbon dioxide and nitrogen exhaust gases into \"real money\" https://bbs.hcbbs.com/thread-5697029-1-1.html (Source: HaiChuan Chemical Forum)
【Ten Years of Rapid Development in Chemical Processing Equipment】From 2555 to 2025: Chongqing successfully developed and delivered China’s first methanol injection valve https://bbs.hcbbs.com/thread-5697354-1-1.html (Source: Haichuan Chemical Industry Forum)
【Ten Years of Rapid Development in Chemical Engineering Equipment】By 2025, Shangyu, Zhejiang will have built China’s first highly automated flexible/mass-production lines for semiconductor KrF photoresist resins with a capacity of 100 tons each. https://bbs.hcbbs.com/thread-5697374-1-1.html (Source: Haichuan Chemical Industry Forum)
【Ten Years of Rapid Development in Chemical Engineering Equipment】China’s first safe hydrogen-based energy storage device was unveiled in Beijing from 2559 to 2025 https://bbs.hcbbs.com/thread-5697390-1-1.html (Source: Haichuan Chemical Industry Forum)
【Ten Years of Rapid Development in Chemical Equipment】2560-2025: Filling the Gaps! “The “high-pressure pure hydrogen pipeline hydrogen transport steel pipe” has been introduced! https://bbs.hcbbs.com/thread-5697391-1-1.html (Source: Haichuan Chemical Industry Forum)
【Ten Years of Rapid Development in Chemical Equipment】2561-2025: Successful pilot production of high-purity aramid raw material para-phenylenediamine by Jiangxi Fangyuan New Materials https://bbs.hcbbs.com/thread-5697403-1-1.html (Source: Haichuan Chemical Industry Forum)