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Kazakhstan will diversify its economy by developing its petrochemical industry

CIS PETROCHEMICALS

Kazakhstan will diversify its economy by developing its petrochemical industry

Diversification of Kazakhstan's economy is possible through the development of projects in the petrochemical industry, the Oil and Gas Strategic Partnership Development Council said in a press release.

According to Energy Minister Nurlan Nogayev, quoted by the press office, consumption of oil and gas chemicals in the world will almost double from the current $1 trillion to $1.8 trillion by 2030 — and Kazakhstan can take advantage of that.

The Minister noted that investments in oil and gas chemical projects amounted to about KZT 500 billion. At that, 4 thousand jobs were created, including 700 permanent and 3 thousand temporary jobs at the construction stage.

The press office noted that for the development of petrochemical projects in Kazakhstan simplified the procedure of attracting foreign labour, and also solved the issue of direct applying international standards in engineering and construction. This allows for reducing the cost of capital investment.

At the moment, five projects are being implemented in the petrochemical FEZ. The production of polypropylene KPI Inc. with a capacity of 500 thousand tons per year of $2.6 billion is under construction. Negotiations are also under way with Borealis on the collaborative implementation of the KLPE project with a capacity of 1,250 thousand tons per year for $6.5 billion.

In addition, Karabatan Utility Solutions gas turbine power plant with a capacity of 310 MW and Air Liquide Karabatan Tech Gas plant for the production of compressed air and nitrogen are under construction.

On 1 October 2019, the production capacity of the FEZ territory was 13 billion tenges. Exports reached 8 billion tenges.

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