Chemical industry output grows by 7.7% in 2024, oil and gas chemical sector by more than 50%
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At the Government session chaired by Prime Minister of the Republic of Kazakhstan Olzhas Bektenov considered the issue of development of chemical and petrochemical industries, primeminister.kz reports.
The reports were made by Minister of Industry and Construction Yersaiyn Nagaspayev, Minister of Energy Yerlan Akkenzhenov, as well as on the ongoing projects in the oil and gas chemical industry reported the Chairman of the Board of KazMunayGas company Askhat Khassenov.
Prime Minister drew attention to the indicators of development of industries. According to the results of last year, the volume of production in the chemical industry increased by 7.7%, in the oil and gas chemical sector by more than 50%. Exports of chemical products exceeded $2 billion, which is 13% higher than in 2023. It is emphasised that the positive dynamics continues in the first quarter of 2025. Thus, chemistry shows growth of 12.5%.
Olzhas Bektenov noted that the development of chemical and petrochemical industries directly affects the strengthening of the country's industrial potential.
The Head of State emphasises the strategic importance of the development of chemistry and petrochemistry in the context of diversifying the economy and increasing its competitiveness. The chemical industry ensures the development of other sectors such as agriculture, mining, metallurgy and construction," the Prime Minister emphasised.
There are 12 large chemical and oil and gas chemical enterprises in Kazakhstan, covering the production of a wide range of products, including mineral fertilisers, inorganic and organic chemicals.
For example, in Atyrau region there is a plant for production of polypropylene. It is currently the largest facility of its kind in Central Asia and the largest manufacturing project in Kazakhstan. Construction of Phase II of this project will begin there in 2024. The key task is to ensure full substitution of imported products and growth of exports with high added value.
At the same time, the Zhambyl region is expected to expand production of sodium cyanide and ammonium sulphate. In addition, promising projects for the production of butadiene, urea, polyethylene terephthalate are being implemented.
The Prime Minister noted the need to increase the depth of processing and expand the range of high-tech products.
All these projects will make a crucial contribution to the creation of value chains. Nevertheless, the industry's potential for deep processing of raw materials is still underutilised. Output volumes of sophisticated products are not yet high. In the context of volatile prices for raw materials and oil, it is necessary to increase processing and enter foreign markets with finished products. This will reduce the vulnerability of the economy and create quality jobs," Olzhas Bektenov said.
Prime Minister gave a number of instructions.
The Ministry of Industry needs to create conditions for attracting private investment in new high-tech projects for processing of raw materials. It was noted that today about 45% of raw materials for chemical production are exported without deep processing. Thus, annually from Kazakhstan exported about 800 thousand tonnes of phosphate rock.
The Ministry of National Economy together with the Ministries of Energy, Industry and Construction has been instructed to submit to the Government proposals with specific measures for tax and customs incentives for chemical and oil and gas chemical projects until 1 July this year.
Prime Minister expressed support for the initiative, voiced at a meeting with representatives of oil and gas business, to develop an independent law on oil and gas chemical industry. The Ministries of Energy, Industry and Construction, National Economy, Justice have been tasked to submit a draft document to the Government Apparatus by 1 September this year.
In connection with unscheduled stoppages at the plant for the production of polypropylene and delaying the stages of implementation of projects for the production of polyethylene and butadiene, the Samruk-Kazyna Fund was instructed to submit a clear schedule for eliminating the causes of downtime of the KPI plant and an updated plan-schedule indicating the stages and timing of completion of the Silleno plant by 15 June this year. A final decision on the Butadiene project is also required by 1 August this year.
The Ministry of Ecology together with the Ministries of Industry and Construction and Energy is tasked with completing this year an inventory of enterprises operating without modern environmental filters and recycling technologies, followed by the adoption of a special plan for their modernisation and introduction of green technologies.
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Kazakhstan adopts action plan to deliver its transport and logistics objectives
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Kazakhstan’s Prime Minister Olzhas Bektenov held a working meeting to discuss the tasks set by President Kassym-Jomart Tokayev relating to the transport and logistics sector, Kazinform News Agency reports.
The meeting on Wednesday underscored that under a working visit to the Kazakh-Chinese checkpoint Nurly Zhol, First Deputy Prime Minister Roman Sklyar examined the ongoing work on enhancing the capacity of the checkpoint, logistics infrastructure as well as speeding up customs procedures with the adoption of digital technologies.
It was noted that a bypass for trucks hauling oversized loads near the checkpoint Nurly Zhol is set to be commissioned by the yearend, boosting cargo traffic, service improvement as well as offering a new impetus to trade and economic ties between Kazakhstan and China.
Currently, the two nations eye round-the-clock operation of checkpoints as well as increasing traffic flow.
Construction of the second tracks on the Dostyk-Moiynty railway section and the Almaty railway bypass is slated for completion by December this year.
The annual handling capacity of Kazakhstan’s seaports is set to rise to up to 240,000 TEUs through commissioning of a new terminal this December, which is also to boost the transit potential of the Trans-Caspian International Transport Route.
Kazakhstan is to complete modernization of five road customs checkpoints on border with China, Uzbekistan and Turkmenistan by the end of 2025. The country also carries out work to introduce CCTV intellectual systems to monitor entries and exits of vehicles and cargo.
By December this year, Kazakhstan is set to complete introduction of e-Freight information system, fully integrated with KEDEN and Agriculture systems, as part of the country’s efforts in transitioning to paperless operations at airports.
Following the meeting, Prime Minister Bektenov tasked to keep under observation the timely implementation of all projects aimed at enhancing the transit and transport potential of Kazakhstan.
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Kazakh President and PM of Hungary hold talks
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Greeting the Prime Minister of Hungary Viktor Orbán, the Head of State reminded that a package of strategically important agreements was signed during his state visit to Budapest last year, Kazinform News Agency cites the Akorda press service.
He said the visit was fruitful in achieving practical agreements and strengthening mutual understanding between Astana and Budapest.
Noting the significance of the upcoming informal summit of the Organization of Turkic States, Kassym-Jomart Tokayev affirmed Kazakhstan’s commitment to constructive dialogue on priority directions of the OTS activities.
Viktor Orbán thanked the Head of State for his visit and noted the sustainable positive dynamics of Kazakhstan-Hungary relations.
He said bilateral cooperation has lately developed dynamically, especially in the economic sphere and expressed gratitude for all-around support in the organization and holding the OTS Summit.
Besides, they also shared views on pressing issues of the international agenda.
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President Tokayev grants academic status to two theaters
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President of Kazakhstan Kassym-Jomart Tokayev addressed today the ceremony of presenting awards to culture and art figures at the Akorda presidential palace ahead of the Cultural and Art Workers’ Day, Kazinform News Agency cites the press service of Akorda.
During the ceremony, the Kazakh President expressed gratitude to culture and art figures, highlighting their "contribution to the spiritual world, preserving the national identity".
It’s culture than shapes the nation, said Tokayev, highlight the role of art in making Kazakhstan recognized worldwide. "Our country is the direct successor of the unique culture of the Great Steppe".
The Head of State also said: "The finest works created on the Kazakh soil played a key role in forming the national identity".
Nowadays, our distinctive culture gains worldwide recognition. Our talented musicians perform on the world’s prestigious stages. Kazakhstani filmmakers receive high praise form experts at different international festivals, said Tokayev.
Astana successfully hosted the World Nomad Games; the city of Aktau was declared the cultural capital of the Turkic world.
The Kazakh President also mentioned the country’s efforts to digitize its cultural heritage, as 1,500 kuis, songs and the best pieces of the folk heritage of the nation are now available at the most popular platforms of the world. Tokayev also stressed the role of the creative industry in promoting the national art.
The Head of State said: "The state continues to pay special attention to art, which shapes the country’s spirituality".
The country built 45 new cultural facilities last year alone and will continue its efforts, he said.
During the event, President Kassym-Jomart Tokayev announced to grant the academic status to the Kazakh Drama Theatre named after Biken Rimova, Almaty State Puppet Theatre and the Philharmonic named after Garifulla Kurmangaliyev.
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Prime Minister instructs to ensure high organisation of UNT and to organise summer employment for students and schoolchildren
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At the Government session chaired by Prime Minister Olzhas Bektenov, issues related to the end of the academic year were discussed, primeminister.kz reports.
In Kazakhstan, 3.9 million students are completing the school year, including over 200,000 eleventh-grade students. The Prime Minister emphasized the importance of ensuring a high level of organization for exams, the Unified National Testing, as well as children's summer recreation and health programs. He also highlighted the need to ensure safety during "last bell" ceremonies and graduation celebrations.
I would also like to address the parent community: I urge you to monitor your children during graduation events and, most importantly, during the summer holidays. Your attention, upbringing, and involvement in your children's lives and challenges will have the most effective impact. The foundations of morality, social behavior, and patriotism are instilled primarily by parents. No ministry can replace parental care and engagement in a child’s life. Raising responsible citizens is a major shared responsibility of both the state and society. Therefore, let us strengthen our cooperation in shaping responsible, educated, and patriotic citizens," Olzhas Bektenov noted.
In addition, the Prime Minister instructed the Ministry of Labor and Social Protection, together with regional authorities, to organize temporary employment for school and university students wishing to work during the summer. All activities must be carried out with strict adherence to labor rights and age restrictions.
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Olzhas Bektenov holds Interim Meeting of Foreign Investors Council
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Prime Minister of the Republic of Kazakhstan, Olzhas Bektenov, held an interim meeting of the Foreign Investors’ Council. The meeting addressed current issues related to investor activities in the country and their contribution to domestic value creation, primeminister.kz reports.
As instructed by the Head of State, the Government is implementing systemic measures to improve the business climate and accelerate economic diversification. These efforts aim to attract additional capital, expand the country’s resource potential, and launch new industrial enterprises.
The Prime Minister emphasized the government’s commitment to close cooperation with investors to implement new projects in priority sectors of the economy, ensure deep localization, and increase employment.
As the Head of State noted, under the current geopolitical and economic conditions, the top priority is to create a favorable environment for enhancing entrepreneurial activity through the attraction of private investment. We are interested in working with you to establish new production facilities in Kazakhstan, which will support job creation and deep localization. It is important to unlock the potential for new areas of cooperation and implement breakthrough projects in the priority sectors of the economy. We have created all the necessary conditions for this. The Government of Kazakhstan is open to constructive dialogue and ready to jointly find solutions that will contribute to our country’s development," Olzhas Bektenov stated.
During the meeting, joint working groups presented reports on the implementation of investment policy; healthcare and the development of the pharmaceutical industry; energy, ecology, and the oil and gas sector; labor legislation and human capital development; and digitalization.
Speakers included:
- Yerlan Dosymbekov, Chairman of the Board of the Association "Kazakhstan Foreign Investors’ Council" and Managing Partner at EY for Central Asia and the Caucasus,
- Cécile Rollin, Managing Director of ExxonMobil Kazakhstan Inc.,
- Dimitriy Propp, Director of Marketing and Sales in Kazakhstan, Kyrgyzstan, and Tajikistan at Knauf Gips Kapchagay LLP,
- Saken Zhumashev, Managing Partner and Executive Director at KPMG Caucasus and Central Asia,
- Adam Alekseyuk, CEO of JSC "Himpharm",
- Huseyin Ozhan, Managing Director at the European Bank for Reconstruction and Development.
The speakers highlighted that future efforts will focus on improving environmental regulations, developing cloud technologies and artificial intelligence, refining migration policies, digitalizing subsoil use processes, enhancing inter-agency coordination regarding the declining Caspian Sea level, and attracting investment and technology in the healthcare sector.
Representatives from the Ministries of National Economy, Energy, Labor and Social Protection, Digital Development, Innovation and Aerospace Industry, and Health provided comments on the issues raised by investors.
Kazakhstan is implementing a number of systemic measures to improve the business environment. The Law on Industrial Policy has been adopted, supporting local suppliers and integrating them into value chains. The Investment Policy Concept has been updated through 2029 to foster a sustainable business ecosystem. The National Digital Investment Platform has been launched to streamline project implementation processes. Infrastructure support is being provided, with ready-made industrial sites available in special economic, industrial, and small industrial zones. Work is underway to conclude long-term contracts and off-take agreements to load existing production capacities and attract new participants.
Following the meeting, the Prime Minister instructed government bodies and organizations to address the issues and recommendations raised.
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