July 21, 2025 –
Kazakh-Chinese Petrochemical Partnership Reaches New Heights with Urea Plant Deal
In a landmark development for Central Asia’s chemical industry, Kazakhstan and China have solidified their energy cooperation through a $1.25 billion urea production facility agreement. The joint venture between KazMunayGas and CNPC represents one of the most substantial cross-border investments in the region’s petrochemical sector.
The strategic facility, to be constructed in the Aktobe Special Economic Zone, will leverage feedstock from the Zhanazhol gas processing complex. With planned annual output reaching 800,000 metric tons of urea, the project promises to transform Kazakhstan’s agricultural inputs market while creating substantial employment opportunities – 3,000 construction jobs followed by 400 permanent operational positions.
Industry analysts highlight the project’s dual significance: enabling value-added processing of Kazakhstan’s natural gas reserves while providing Chinese enterprises with crucial overseas production experience. The collaboration aligns perfectly with Kazakhstan’s economic diversification strategy and China’s Belt and Road Initiative objectives.
“This venture demonstrates how energy infrastructure partnerships can yield mutual benefits,” commented an AsiaMB industry observer. “Beyond immediate economic impacts, it establishes new benchmarks for technology transfer and sustainable resource utilization in Central Asia.”
The urea complex is expected to substantially enhance Kazakhstan’s fertilizer export capacity while supporting domestic food security. Project completion is anticipated within three years, with production slated to commence by late 2028.