Construction Frontline
China and Kazakhstan advance $1.25 billion chemical engineering project
Seetao 2026-05-12 10:54
  • In May 2026, PetroChina and KMG will advance the Aktobe Chemical Complex project
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China National Petroleum Corporation and Kazakhstan National Petroleum and Natural Gas Corporation have recently reached multiple consensuses on the urea and methanol chemical complex project in the Aktobe region, promoting cooperation from traditional oil and gas extraction to the high value-added chemical industry. After the completion of this strategic project, it will completely change Kazakhstan's dependence on imported urea.

Multi party collaborative promotion of project implementation

Diaz Diagnov, Chairman of KMG PetroChem, a petrochemical company under KMG, held high-level talks with Ru Shitao, General Manager of PetroChina Aktobe Oil and Gas Company, and reached consensus on core issues such as project implementation arrangements, collaborative problem-solving, and participant cooperation mechanisms. Both sides also held a special meeting with the Deputy Chief Executive of Aktobe region to coordinate national support policies, progress in the establishment of special economic zones, and infrastructure construction. A special working group consisting of 8 experts has been stationed in the Aktobe area for a long time to coordinate and coordinate resources from all parties.

1.2 billion US dollars strategic project

The chemical complex is located in Mugarzhar district of Aktobe region, adjacent to the large-scale natural gas processing plant in Zanaror, which can stably obtain raw material supply. The total investment of the project is 1.25 billion US dollars, with a designed annual production capacity of 880000 tons of high nitrogen urea and 80000 tons of methanol. In 2024, Kazakhstan's urea import volume reached 4.723 million tons, with a local production of only 345500 tons, indicating a high degree of external dependence. After the completion of the new factory, it will fully meet the domestic market demand. The project construction period can create 3000 temporary employment positions, and after operation, it will provide approximately 400 long-term positions. Keywords: the Belt and Road News Network, China Kazakhstan Cooperation, Chemical Engineering、Engineering Information

Deep synergy of China Kazakhstan industrial chain

This cooperation is an inevitable result of long-term and deep cooperation between Chinese and Kazakh enterprises. In 1997, China Petroleum acquired the Aktobe project, marking the beginning of oil and gas cooperation between China and Kazakhstan. In July 2025, the four parties signed an investment agreement for the construction of a urea plant; Sign a key principle agreement in September 2025, agreeing to jointly establish a joint venture in 2026. During the meeting, both sides also reviewed the expansion and renovation plan of the Shymkent Refinery, which aims to increase its annual production capacity from 6 million tons to 12 million tons. This refinery, jointly owned by China and Kazakhstan, has completed modernization and become the first enterprise in Kazakhstan to produce Euro IV and Euro V standard refined oil products.Editor/Gao Xue

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