Kazakhstan intent on achieving self-sufficiency in fertilizer production through increased chemical output expansion
Revamped Rewrite:
Chemical Boom in Kazakhstan: Aiming for Self-Sufficiency
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Kazakhstan is on a roll, ramping up its chemical industry in a bid to diversify its economy and secure food security. According to Yersaiyn Nagaspayev, Minister of Industry and Construction, this pioneering move will significantly boost their agricultural and industrial sectors.
As things stand, the chemical sector accounts for 4.6% of Kazakhstan's manufacturing empire, providing a solid foundation for industries like agriculture, metallurgy, and construction materials. Last year, the chemical industry churned out more than 1 trillion tenge (around US$1.9 billion). Key products range from fertilizers and pesticides to chromium compounds, polypropylene, and automotive chemicals.
Major players such as KazAzot, Kazphosphate, Kaustik, and Atyrau oil refinery stand at the forefront of meeting domestic demand and scaling up export potential. Over the past five years, the chemical industry has enjoyed a steady upward trend, with an average annual growth of 5%.
In support of the sector, the government has unveiled several measures, including exempting raw materials for pesticide production from VAT to prop up local manufacturers, securing exclusive export rights for ammonium phosphate and ammonium nitrate to curb illegal exports, and stabilize prices.
Chemical production soared by 12.5% in the first quarter of this year, hitting 406 billion tenge (approximately US$785 million). The ministry anticipates a 5% growth for the year, fueled by new projects and increased production in polypropylene, sodium cyanide, fertilizers, and yellow phosphorus.
Nourishing food security is a top priority for Kazakhstan. By 2030, they aspire to meet 100% of domestic demand for nitrogen, phosphorus, and potassium fertilizers via domestic production. Planned fertilizer output includes 1.5 million tons of ammonium phosphate, 800,000 tons of urea, 700,000 tons of potassium chloride, and 300,000 tons of dicalcium phosphate, catering to 80% of the nation's needs.
Kazakhstan is exploring the Coal Chemistry sector as a promising realm, leaning on its substantial coal reserves. Collaborations with CHN Energy and East China Engineering aim to establish ammonia and urea production facilities. Domestic coal mining enterprises are also partnering with scientific institutions to produce fertilizers, absorbents, nanomaterials, and diesel fuel.
At the moment, 49 projects are in motion within the chemical industry. By 2035, investments in the sector are projected to reach 4.8 trillion tenge (approximately US$9.3 billion).
In-Depth Look:
- Petrochemical Push: Kazakhstan is pouring money into the petrochemical sector, with plans including six major projects worth around $15 billion between 2024 and 2030. These projects focus on manufacturing high-value-added chemicals such as polyethylene, PET, alkylate, and urea, with launches slated for 2027-2029[1][5].
- Industry Growth: The chemical production saw a dramatic surge of 12.5% in Q1 of 2025, fetching 406 billion tenge (around $773 million)[4]. This growth forms part of a broader strategy to expand the chemical sector, which currently houses 49 ongoing projects[2][5].
- Investment Goals: Kazakhstan aims to bring in 4.8 trillion tenge (approximately US$9.3 billion USD) in investments for the chemical and petrochemical industries by 2035. This investment is expected to generate over 19,000 jobs and bolster the country's economic stability[3][5].
- Sector Emphasis: The focus encompasses the production of vital chemical components like caustic soda, acids, fertilizers, and catalysts, which are essential for industries like oil production, metallurgy, construction, and agriculture[5].
- Regulatory Landscape: The government is working on a new law for the petrochemical industry to ensure equal access to raw materials and introduce tax and financing support measures, creating a nurturing environment for investments and growth[1].
- Infrastructure Development: Key infrastructure is being developed at the National Industrial Petrochemical Technopark, with 18 registered projects focusing on polypropylene, polyethylene, and synthetic rubber production[1].
- Economic Impact: The projects underway are anticipated to create both temporary and permanent jobs, contributing significantly to the economy and propelling industrialization efforts[1][5].
- Nagaspayev, the Minister of Industry and Construction, is hoping that Kazakhstan's increasing chemical industry will benefit the agricultural and industrial sectors, rangelands, and health-and-wellness sectors, particularly through nutrient-rich fertilizers made from ammonium phosphate and other key products.
- In addition to traditional chemical production, Kazakhstan is venturing into nanomaterials, aiming to produce fertilizers, absorbents, and diesel fuel with the help of domestic coal mining enterprises and scientific institutions.
- The government has granted exemptions on VAT for raw materials used in pesticide production, and secured exclusive export rights for ammonium phosphate and ammonium nitrate, in an effort to prop up local manufacturers and maintain control over exports.
- Kazakhstan's revamped chemical sector has attracted major players like KazAzot, Kazphosphate, Kaustik, and Atyrau oil refinery, who are not only meeting domestic demand but also scaling up export potential, especially for high-value-added chemicals like polypropylene, PET, alkylate, and urea.
