Results of the Year
Our Association Facilitates Collaboration Among Industry Players, Producers, Consumers, and Government Agencies
Gabit Tolkimbayev, General Director of the Association of Producers and Consumers of Petrochemical Products, answers questions for Petroleum.

– Gabit Azhdarovich, what is the potential capacity of Kazakhstan's petrochemical market?
– According to the Bureau of National Statistics under the Agency for Strategic Planning and Reforms of the Republic of Kazakhstan, the market volume for key petrochemical products in 2023 was: for polypropylene – 116,841 tons, polyethylene – 202,300 tons, polyethylene terephthalate (PET) – 77,100 tons.
– To what extent do domestic producers meet this market demand?
– One of the most recent and technologically advanced projects launched in the Republic is the Integrated Gas Chemical Complex by Kazakhstan Petrochemical Industries LLP. As you know, it began operations on November 8, 2022, in the Atyrau region. The facility processes propane from the Tengiz field and has a design capacity of 500,000 tons of polypropylene per year.
Another domestic polypropylene producer is Neftekhim LTD LLP, launched in 2009 in the Pavlodar region. It has a design capacity of 70,000 tons annually and primarily uses feedstock supplied by the Pavlodar Petrochemical Plant.
Regarding the domestic market, the commissioning of KPI LLP’s facilities decreased the share of polypropylene imports in meeting demand from 63% in 2022 to a projected 17% in 2024.

– The Roadmap for the Development of the Petrochemical Industry until 2030, recently approved by the government, anticipates nearly sixfold growth in production. Given that production sharing agreements protect major operators, what raw material base supports this forecast?
– Propane from the Tengiz field is already used to produce polypropylene. Additionally, work has started at Tengiz on constructing a gas separation complex to extract butane and ethane for the Butadiene (butadiene rubber) and Silleno (polyethylene) projects.
Negotiations will be held with the operators of Karachaganak and Kashagan to ensure feedstock for future petrochemical projects. Plans include launching a terminal for fractionating LPG (propane, butane) from the Bolashak plant at Kashagan and extracting ethane from the Bolashak plant for petrochemical needs.
Another key task is modernizing the Atyrau Refinery to produce benzene and paraxylene without compromising fuel production. The Shymkent Refinery expansion project (PKOP LLP) will also consider configurations for petrochemical production.

– What is the status of key projects already underway, such as Polyethylene, Butadiene, Ammonia, and Urea?
– For the Polyethylene project (Silleno LLP), involving KMG (29.9%), KMG PetroChem LLP (10.1%), SIBUR (30%), and Sinopec (30%), construction of the gas separation complex has begun. In early September 2023, materials from the updated design documentation were uploaded to the State Expertise portal, and a conclusion is expected in December 2023.
For the Butadiene project (Butadiene LLP), involving Tatneft (75%) and Samruk-Kazyna Ondeu LLP (25%), a licensing agreement was signed with Lummus Technology (USA) for technological installations (butadiene, polyisoprene rubber, MTBE). The project participants shifted the strategy from EPC to E+P+C to optimize capital expenditures. On October 1, 2024, within the E stage, a contract was signed with China Tianchen Engineering Corporation for the development of the Extended Basic Design.
The ammonia and urea complex by KazAzot Prime LLP, with a design capacity of 600,000 tons of ammonia, 577,500 tons of urea, 395,000 tons of nitric acid, and 500,000 tons of ammonium nitrate per year, will be implemented in the Mangystau region. Currently, FEED and feasibility studies are underway, alongside preparations for an EPC contract.
The Urea project, 100% owned by KMG PetroChem LLP and with a design capacity of 1.2 million tons per year, is planned for the Mugodzhar district of the Aktobe region. A framework agreement with CNPC has been signed to deepen strategic cooperation in the oil and gas sector. The project will explore urea production from commercial gas produced by CNPC-Aktobemunaigas. Preliminary technological configurations and product marketing studies have been completed, and the next steps include defining the terms of participation and starting pre-design documentation.
– What other projects are planned for the coming years?

– Expectations for the development of the petrochemical industry are quite high; several key projects can be highlighted among them:
- The Methanol project by Zhaik Petroleum Ltd LLP, with a capacity of 130,000 tons per year, located in Beles, West Kazakhstan region. Zhejiang Free Trade Zone Lead Import & Export Co Ltd, holding a 51% stake, has been engaged as an investor. EPC contract negotiations are underway.
- The Alkylate project by INTERTRANS C.A. LLP, with a capacity of up to 95,000 tons per year, located in Pavlodar. The project is in the feasibility study stage.
- Polystyrene production (Atyrau Refinery modernization), with a capacity of 155,000 tons per year, located in Atyrau. The project is under development, with investment parameters and timelines being finalized.
- Polypropylene production by Almex Polymer LLP, with a capacity of 80,000 tons per year, located in Shymkent. The Unified Industrialization Map includes the project, and a licensing agreement is under negotiation.
– Gabit Azhdarovich, large-scale industry development plans risk a workforce shortage. For years, Kazakhstani universities have not trained many engineers, petrochemical technologists, and related specialists due to a lack of job opportunities. Now, there is an explosive demand for such professionals, and highly skilled specialists are being poached and lured from one operation to another. How can Kazakhstan quickly train and develop its qualified personnel?
This is a very serious issue. One key reason for the shortage of specialists in chemical technologies is that high school graduates are currently reluctant to apply to chemistry departments. This is partly because passing entrance exams, which require two difficult subjects—physics and chemistry—is challenging. As a result, the number of applicants has decreased, especially in the regions. Universities annually appeal to the Ministry of Science and Higher Education to replace the entrance exams, but the issue remains unresolved.
At the same time, domestic universities and our Petrochemical Association are jointly working in this area. In particular, efforts are underway to create a Center for Professional Qualification Recognition under the Association of Producers and Consumers of Petrochemical Products. This center, accredited by Kazakhstani legislation, will recognize professional qualifications.
Leading Kazakhstani universities, which are members of our Association, actively train qualified petrochemical specialists. These institutions are led by renowned scientists such as Gulzada Tanirbergenovna Shakulikova, Aigul Amantaevna Amitova, Kalykyz Utemisovna Zhamansariyeva, Rinat Maratovich Iskakov, and Aigul Sokeevna Bukanova, all of whom actively contribute to the Association's activities.
For example, the L.N. Gumilyov Eurasian National University in Astana offers bachelor’s and master’s degree programs in Organic Substances and Polymers Chemistry and Chemical Engineering. The university conducts research in polymer materials chemistry. It boasts a robust infrastructure, including six laboratories, including the Institute of New Chemical Technologies and the Laboratory of Petrochemistry and Polymer Materials.
Other institutions involved in petrochemical training include the School of Chemical Engineering at KBTU, which focuses on modern technologies for oil and gas processing, polymer materials, and organic synthesis; the K. Satpayev Kazakh National Research Technical University; APEC Petrotechnic Higher College in Atyrau; and the N. Nadirov Institute of Petrochemical Engineering and Ecology at the Safi Utebayev Atyrau Oil and Gas University, which has 12 laboratories for educational and research purposes. These graduates are highly sought after in the professional market.
Additionally, two years ago, the globally renowned university Heriot-Watt (UK) entered Kazakhstan, opening a branch in Aktobe to focus on oil and gas disciplines.
– Does the current legal framework align with the needs and prospects of the domestic petrochemical industry? If not, what needs to change?
There are indeed gaps, and the government is already addressing them. The Ministry of Energy and the KazEnergy Association, which our association is also involved in, have formed a working group to prepare a draft Law on the Petrochemical Industry of the Republic of Kazakhstan. The group has developed a consultative document on regulatory policy for the draft law, known as the Regulatory Policy Consultation Document (RPCD).
The RPCD is a formal document outlining state regulation issues in a specific area, proposed solutions, justification for the draft law, and other aspects determined by the government. Once this issue is included in the Legislative Work Plan for 2025, work on the law itself will commence.
Additionally, the Roadmap mentioned above for the Development of the Petrochemical Industry, which aims to develop the sector comprehensively and secure feedstock, plays a significant role in this effort.
– Please tell us about the activities of the Association you lead, such as when it was founded, its goals, and who participates in its work.
– The Association of Producers and Consumers of Petrochemical Products (Petrochemical Association) was established on August 7, 2020, to represent common interests and promote the sustainable development of Kazakhstan's petrochemical industry.
The Chair of the Association’s Council is Dr. Raushan Gaisievna Sarmurzina, a professor, academician of KazNAEN, member of the Presidium, and Honorary Academician of the National Academy of Sciences of Kazakhstan.
I want to highlight the active participation of well-known industry professionals in the Association’s governance, such as Sadukhas Atashovich Meraliyev, Galymzhan Zhirshibekovich Amanturlin, Murat Abiyevich Dosmuratov, Nurlan Koishievich Keykin, Rustem Ginayatollauly Nygmet, Abzal Serikovich Doszhanov, and many others.
The main task of the Association is to ensure effective communication between industry players, producers, consumers, and government agencies. Members include petrochemical producers and consumers, such as all oil refineries, universities, engineering, and production companies.

– What tangible results can the Association’s activities already demonstrate?
– In its relatively short existence, the Association has achieved significant milestones. The first Kazakhstan QazPolymers Forum-2022 was organized in Atyrau on December 9, 2022. It provided a platform for dialogue on the development prospects of the domestic polymer market and measures to encourage the creation of new production chains for finished products using local polymer feedstock.
The Association has also actively developed the recently approved Roadmap for the Development of the Petrochemical Industry until 2030. Additionally, as mentioned earlier, the Association actively participates in the working group drafting the Law on the Petrochemical Industry.
– What are the future plans?
– We plan to continue the aforementioned activities and initiate several new endeavors. Currently, work is nearing completion on establishing the Technical Committee for Standardization – Petrochemistry. This includes forming the committee’s composition, secretariat, and 2025 work plan.
Under the Roadmap, efforts are underway to create a Consortium Research Center for Petrochemical Development involving universities and research organizations under the Ministry of Energy. To support this, we have established a consortium-based science and technology park for petrochemistry and polymer materials.
Countries like the USA, China, Germany, and Saudi Arabia have established petrochemical and polymer material science and technology centers that play a pivotal role in their economies. For Kazakhstan, this is a first. The park’s research will address strategic national objectives, including developing composite polymer materials, improving feedstock characteristics, enhancing energy efficiency, advancing circular economy principles, and meeting stringent UN environmental requirements for plastics.
Additionally, we are developing a platform to unite Kazakhstani and international scientists and industry experts within the Association to collaborate on petrochemical projects. The research hub maintains a database of scientists and experts, their specializations, work experience, and contact information and provides access to scientific resources, data, and software for Association members.
These projects are coordinated by the head of the Association’s Project Office, Dr. Gaini Zhumagalievna Seytenova, a Bolashak Program alumna and Associate Professor of Chemistry.
Overall, we will continue working to represent the common interests of the Association’s members and promote the sustainable development of Kazakhstan’s petrochemical industry.