en.Wedoany.com Reported - On March 31, Kazakhstan's national oil and gas company, KazMunayGas (KMG), and China National Petroleum Corporation (CNPC) officially launched a urea production project in the Aktobe region. This move will fill the gap in Kazakhstan's domestic urea production capacity, help it break free from import dependence, and promote the upgrading of its petrochemical industry.

Project Launch with Clear Details

The project, implemented jointly by KMG and CNPC, is located in the Mugalzhar district of the Aktobe region, adjacent to the Zanazhol gas processing plant. The total investment is approximately $1.25 billion (about 591.925 billion tenge, based on the official exchange rate of 481.54 tenge/USD as of March 31, 2026).

The new plant is designed with an annual production capacity of 800,000 tons and is expected to commence operations in 2029. It will supply 600 million cubic meters of marketable natural gas annually, thereby filling the gap in Kazakhstan's urea production.

Domestic Production Gap and Considerable Export Potential

Currently, Kazakhstan does not produce urea, and its agricultural needs are entirely dependent on imports. The projected annual domestic demand by 2029 is about 300,000 tons.

With stable global urea demand, Kazakhstan, leveraging its abundant natural gas resources to develop this project, can meet domestic essential needs. The surplus production capacity can also be exported to priority markets such as the EU, Turkey, and India, aligning with the global urea industry's supply and demand dynamics.

Sino-Kazakh Synergy for Mutual Benefit and Win-Win Outcomes

KMG, as Kazakhstan's national energy leader, is collaborating with Sinopec to advance the project. Building on local natural gas resource advantages, it aims to drive the petrochemical industry towards deeper processing. CNPC, on the other hand, contributes technology and experience while expanding its presence in the Central Asian chemical materials market.

Upon completion, the project will improve Kazakhstan's agricultural supply chain, enhance the competitiveness of its agricultural products, and achieve a deeper implementation of Sino-Kazakh energy cooperation.

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