Results of the Year
From design to implementation: How KMG PetroChem is involved in shaping a gas-chemical cluster in Kazakhstan
Diaz Diyanov, Chairman of the Management Board of KMG PetroChem LLP
In 2025, KMG PetroChem’s gas-chemical projects achieved several key milestones. Diaz Diyanov, Chairman of the Management Board of KMG PetroChem LLP, notes that the reporting period was marked by the completion of project structuring and contractual procedures, which enabled moving to the initial stage of construction and the practical formation of gas-chemical infrastructure.
This transition was formalized at the end of the year by a landmark event: the start of construction and installation work at the Gas Separation Complex (GSC) site near the Tengiz field in Atyrau Region. The ceremonial driving of the first piles at the GSC is not just a technical step but the actual start of building modern infrastructure that is critically important for establishing a full-scale oil and gas chemical cluster in the country.
GSC: a key link in an integrated ecosystem
The Gas Separation Complex is not an isolated facility but a key link in an integrated oil-and-gas chemical ecosystem. It will be a reliable feedstock supplier for the polyethylene plant under construction in the special economic zone “National Industrial Petrochemical Technopark” (SEZ NINT), and it will also supply propane as an independent commercial product. In the longer term, this will allow Kazakhstan not only to meet domestic polymer demand but also to enter international markets with high-value-added products.
The project is unique in scale: dry-gas processing capacity up to 9.1 bln m³ per year with recovery of up to 1.6 mln tons of ethane and about 360,000 tons of propane. Such volumes of valuable-fraction recovery are being implemented in Kazakhstan for the first time. Dry gas from Tengiz has an ethane content of up to 14%, which is significantly higher than that of many fields worldwide, making processing more efficient.
Implementation of the GSC and the polyethylene plant will remove the underutilization of valuable ethane for commercial purposes and will enable the rational use of national resources.
Technologies and EPC contractor
In the design, the best available technologies are applied: licensed Honeywell UOP processes (UOP RSV for the extraction of liquefied hydrocarbon gases and Merox for the purification of propane), providing ethane recovery up to 98%. The EPC contract for engineering, procurement and construction on a turnkey basis is being executed by a consortium led by Tecnimont S.p.A. (MAIRE Group) and Consolidated Contractors Company (CCC).
Local content: a strategic imperative and investment in capital
The project is positioned from the outset as one of the largest industrial initiatives in terms of engaging Kazakhstani business. Domestic business is given the opportunity to participate across the entire production cycle, from knowledge-intensive engineering to complex installation work, creating new, sustainable production and logistics chains.
- Design and engineering: the involvement of Kazakhstani design institutes and engineering companies is envisaged to perform specific scopes of work.
- Equipment manufacturing (localization): carbon steel columns and pressure vessels are planned to be manufactured in the Republic of Kazakhstan.
- Supply of components and materials: a wide range of supplies is open to domestic manufacturers, including electrical equipment, shut-off valves, and construction/auxiliary items (steel structures, piles, ready-mix concrete, pipes).
- Subcontracting and personnel impact: construction and installation works are carried out through EPC contractors, who are required to engage qualified Kazakhstani subcontractors.
Human capital development
As part of developing local content, the Gas Separation Complex (GSC) project emphasizes investing in human capital. At the construction peak (2026–2027), up to 3,500 jobs are planned.
KMG PetroChem LLP has launched the two-year QadamPro program to train young specialists. Commitments to prioritize local personnel are set out in a Memorandum of Cooperation with the Akimat of Atyrau Region. An additional driver of expertise transfer is the opening of a project office in Milan, where Kazakhstani engineers work alongside global industry leaders.
As noted by Diaz Diyanov, Chair of the Management Board of KMG PetroChem LLP: “We see our achievements in 2025 not only in signed contracts but also in human capital. Our strategy is an investment in the future through localization programs and personnel training, such as QadamPro. An industrial breakthrough is impossible without technological expertise. Therefore, in parallel with the construction of the physical infrastructure, we are systematically building national human capacity. Together with the commissioning of deep-processing plants, this will be KMG PetroChem’s most sustainable legacy for the region and the country, ensuring high added value over the long term.”
Trunk pipelines: the cluster’s logistics arteries
The trunk pipelines (TP) project is an integral part of the single process chain. KMG PetroChem LLP recently signed an EPC contract for TP construction with a consortium led by China Petroleum Pipeline Engineering Co., Ltd. The contract covers the full cycle of work, from design to commissioning.
This project will ensure reliable, safe, and uninterrupted transportation of liquefied ethane and propane fractions from the GSC at Tengiz to petrochemical production facilities in the SEZ “National Industrial Petrochemical Technopark” (SEZ NINT) in Karabatan. Pipeline logistics here is a key element that guarantees the stability of the entire system. For the first time in Kazakhstan, an ethane pipeline and a propane pipeline will be laid in a single linear corridor, each with a total length of 210 kilometres. Commissioning of the TP is scheduled for late 2028, fully synchronized with the start-up of the GSC and the polyethylene plant.
Projects of the Partnership: 2025 progress overview
In addition to the GSC and trunk pipelines TP projects, in 2025, the LLP achieved substantial progress on prospective projects within its petrochemical portfolio:
- Urea plant is a deep processing product of natural gas: together with China National Petroleum Corporation (CNPC), a project is underway to build a plant producing urea and methanol. The current status reflects dynamic progress: the Feasibility Study (FS) has been completed and is under review. Urea field trials on local soils have been successfully conducted. Completion of the joint venture establishment is scheduled for early 2026.
- PTA/PET project (terephthalic acid/polyethylene terephthalate): the project remains current. A preliminary feasibility study has been completed, and negotiations are underway with potential strategic partners.
- LAB project (linear alkylbenzene): together with Uzbekneftegaz JSC (50% interest), a project is being implemented to produce LAB — a key feedstock for detergents. A feasibility study has been prepared, and work is underway to establish the JV and advance to the Front-End Engineering Design (FEED) stage. Implementation will enable the production of detergents in Kazakhstan and Uzbekistan, as well as entry into international markets, both near and far.
Diaz Diyanov, Chair of the Management Board, KMG PetroChem LLP: “The progress achieved in 2025 on our key projects — the Gas Separation Complex and the trunk pipelines — is a direct response to the strategic task of diversifying the economy. We are focusing on maximizing the recovery of valuable fractions that were previously used inefficiently.
Every step we take — from driving the first pile to preparing the feasibility study — is aimed at building a closed-loop processing cycle. These are not just projects but a technological bridge that converts national hydrocarbon resources into highly marketable, export-ready products, giving Kazakhstan a new level of competitiveness in the global market.”