Kazakhstan plans to increase its production volume of petrochemical products to 2 million tons by 2025, which is 5.5 times more than in 2020, Kazinform news agency reported last Saturday citing the Deputy Prime Minister of Kazakhstan Roman Sklyar’s statement to Kazakh deputies.
Roman Sklyar noted that five plants for the production of petrochemical products with a total capacity of about 870 thousand tons presently operate in the country, adding that “over the past 4 years (2016 - 2020), the volume of manufactured products increased 4 times and amounted to 360 thousand tons, of which 80% were exported.”
The Deputy Prime Minister added that the construction of three more plants – plant for the production of polypropylene with a capacity of 500 thousand tons/year, plant for the production of technical gases and plant for the production of octane-enhancing additives for gasoline with a capacity of 57 thousand tons/year – is expected to complete this year.
Two more petrochemical projects – a polyethylene terephthalate (PET) production facility with a capacity of 430 thousand tons per year and a methanol production facility with a capacity of 130 thousand tons per year – are also expected to be implemented by 2025, according to the report.
He said that there is a stable global demand for petrochemical products confirmed by several international agencies such as IHS, McKinsey and BCG.
“According to analysts' forecasts, by 2030 the demand for polypropylene will amount to about 100 million tons per year, while the supply in the world will amount to 90 million tons per year, taking into account the existing and commissioned capacities. World demand for polyethylene is growing by an average of 4% per year and will amount to 160 million tons per year. The growth driver of global demand will be the countries of Southeast Asia, including China, Korea, and Japan. In China alone, the demand for polypropylene and polyethylene will increase by 40 million tons until 2037,” Sklyar concluded.
In march, a new massive oil and gas field was discovered in the Kazakhstan’s Mangystau region. The oil in the field is reportedly low in sulfurous content as compared with hydrocarbons produced in other parts of Kazakhstan, which makes it easier to process and transport.