Wedoany.com Report-Nov. 18, KazMunayGas and Uzbekneftegaz have signed a framework agreement to jointly develop a petrochemical complex for producing linear alkylbenzene (LAB), an essential component in synthetic detergents and household chemicals. The signing took place during President Kassym-Jomart Tokayev’s state visit to Uzbekistan, formalizing both companies’ intent to study and design the project.

The agreement initiates the design phase along with technical and economic assessments necessary to advance the project. The proposed complex is planned to have a production capacity of up to 50,000 tonnes per year (tpy) of LAB. A final investment decision will be made once the design and feasibility work are completed.

If realized, the project is expected to meet domestic LAB demand in both Kazakhstan and Uzbekistan, reducing reliance on imported raw materials and supporting the growth of regional chemical and household product industries. The collaboration aims to strengthen local production capabilities and promote sustainable supply chains within the two countries.

This initiative follows an earlier agreement between KazMunayGas and Uzbekneftegaz on the Zharkyn geological exploration project, demonstrating ongoing cooperation between the two energy and chemical sector leaders.

By leveraging combined expertise, the companies plan to ensure the complex meets modern operational and environmental standards while providing reliable feedstock for industrial and consumer applications. The project will also contribute to regional economic development by creating technical, operational, and support roles throughout its construction and operational phases.

The framework agreement reflects a shared commitment to advancing the chemical industry in Central Asia and exploring opportunities for joint investment in infrastructure that can enhance self-sufficiency in essential chemical materials. Once operational, the LAB facility is expected to serve as a cornerstone for local detergent and household products manufacturing, helping to stabilize supply chains and reduce dependence on imports.

The two companies will collaborate closely on engineering, procurement, and project management activities during the design and feasibility stages to ensure that the complex is technically robust and commercially viable. The project is also expected to align with broader regional strategies for industrial development, including enhancing domestic production capacities, fostering innovation, and encouraging sustainable practices in chemical manufacturing.

KazMunayGas and Uzbekneftegaz have expressed confidence that the joint development will not only meet domestic needs but also create opportunities for further cooperation in downstream chemical projects, positioning the two countries as important players in the regional petrochemical sector.

This agreement marks a significant step in the ongoing partnership between Kazakhstan and Uzbekistan, reinforcing bilateral industrial collaboration and long-term economic integration in the energy and chemical sectors.