Petrochemical industry

Petrochemical industry

Petrochemical industry

Investment proposals

Oil Reserves

12
in the world
13,2 billion tons
Geological reserves of oil
4,6 billion tons
Recoverable reserves
90,5 million tons in 2019
60% of Tengiz, Kashagan and Karachaganak

Natural gas reserves

3,9 Trillion m3
The geological reserves of gas
2,2 Trillion m3
dissolved
1,7 Trillion m3
free
56,4 m3 in 2019
76% of Karachaganak, Tengiz, Kashagan

The petrochemical industry has a high potential to attract foreign direct investment

The raw orientation

The output of high added value (e.g., new synthetic materials)

Natural, associated petroleum gas and gas condensate deposits - a valuable raw material for gas chemistry

methane
Ethane
propane
Bhutan

*Gas from Caspian sea fields contains 9-13% of ethane.

For the profitable development of the petrochemical content of ethane in the gas must be at 8%.

GOVERNMENT SUPPORT*:

Prioritization matrix of oil and gas complex products of the Republic of Kazakhstan.

Attractiveness of the product group for the economy of the Republic of Kazakhstan
High
Low
Oil Gas Oil and gaseous hydrocarbons Petrol Diesel fuel Rubber Kerosene Alcohols Polymers Oil Oil, tar, bitumen Fuel additives Plastics Varnishes and paints Synthetic rubber Resins and rosins Monomers Surface-active reagents Synthetic filament
High
Low Quality of conditions in the Republic of Kazakhstan for the segment development

The Matrix of attractive refining products in the Republic of Kazakhstan.

Product Group Priority Level
High
Low
  1. Oil
  2. Natural gas
  3. Petrol
  4. Kerosene
  5. Diesel fuel
  6. Petroleum gases and gaseous hydrocarbons
  7. Polymers
    • Polypropylene
    • Polyurethanes
    • HDPE
    • Polycarbonates
    • Acrylic polymers
  8. Rubber
  9. Alcohols
  1. Oil, tar, bitumen
  2. Solvents
  3. Fuel additives
  4. Plastics
  5. Varnishes and paints
  6. Oils
  1. Synthetic rubber, latex
  2. Resins and rosins
  3. Monomers
  4. Surface-active reagents
  5. Synthetic threads

Location close to major markets

Forecast for major agroindustrial complex in 2015-2020
Billion USD
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CACR 2015-2020%
Fertilizer market 2015
Agroindustrial complex growth
Reducing the difference between global supply and demand 2015-2020
Billion USD
Margin reduction
Nitrogen
Phosphorus
Potassium

Countries with the greatest increase in productive capacity

Nitrogen

USA
Saudi Arabia
Egypt

Phosphorus

Morocco
China
Saudi Arabia

Potassium

Canada
Russia
Turkmenistan

Prospect of starting production in Kazakhstan in view of difference between the global demand and supply of nitrogen fertilizers reduction

The main markets for fertilizer (Russian Federation and China) are located near Republic of Kazakhstan

Remoteness of countries with the greatest increase in production capacity makes the final cost of export from Republic of Kazakhstan more competitive

STATE SUPPORT:

Maintenance with raw materials of strategically important investment projects

Granting the right for acquisition of the liquefied petroleum gas as raw materials to industrial consumers by state-regulated price
The pricing mechanism for gas commodity for investment projects using gas as feedstock** according to the formula: supply price of gas + the minimum level of margins for national operator (7%)

Important: the investment project must be included in the list of investment projects for the production of petrochemicals of the Ministry of energy of Kazakhstan***

1. The law of RK "On gas and gas supply"

2. The order of the Minister of energy of the Republic of Kazakhstan from December 15, 2014 № 209 "On approval of Rules for determining the maximum wholesale prices of sales of commercial gas in the domestic market of the Republic of Kazakhstan and the marginal prices of liquefied petroleum gas sold in the plan of supply of liquefied petroleum gas on the domestic market of the Republic of Kazakhstan out of electronic trading platforms"

3. The order of the Minister of energy of the Republic of Kazakhstan dated April 29, 2020 No. 165 "On approval of Rules of forming the list of investment projects on production of petrochemical products"

DOCUMENTS

for inclusion of the project in the List of investment projects on production of petrochemical products

application for inclusion of investment project into the List
the schedule of the implementation of the investment project
feasibility study of investment project

evidence:

the right to use the licensed technology (the agreement or other document governing the right to use)
the experience of operating similar facilities and (or) realization of products in the major markets in the project the proportion of local content

Investors as state support can also get incentives in the form of in-kind grant customs and tax exemptions, investment subsidies, having signed an investment contract with the investment Committee of the Ministry of foreign Affairs.

An alternative mechanism of state support are special economic zone.

In the framework of the special economic zone investors can obtain land with all the infrastructure, tax and customs privileges. Government financed construction of infrastructure, this will reduce to 20% of capital and 15% of operating costs.

In both cases, the opportunity attracting foreign labor force in the simplified mode.

STRATEGIC PROJECTS OF THE FEZ "NATIONAL INDUSTRIAL PETROCHEMICAL TECHNOPARK"

Construction of the integrated petrochemical complex for production of polypropylene

(Phase 1)

500 thousand tons/year
Power
2,6$ billion
The cost
2021 year
Completion date
of construction

In the study:

Construction of the integrated petrochemical complex for production of polyethylene

(Phase 2)

1.25 million tons/year
Power
>6,6$ billion
The cost

PLANS IN THE FUTURE TO 2030

The implementation of large-scale production for the production of petrochemical products with high added value (polypropylene, polyethylene, polyethylene terephthalate, etc.);
Creation of petrochemical cluster in Atyrau region;
Ensuring technology transfer;
The increase of exports due to high export potential of petrochemical products;
Implementation of training of highly qualified personnel in the oil and gas industry.

READY INVESTMENT PROPOSALS

The construction of a plant for the production of base oils
The construction of a new complex for the production of mineral nitrogen fertilizers in Aktau
The construction of a gas chemical complex for the production of methanol and olefins on the territory of SEZ "seaport Aktau"
The construction of a gas chemical complex for the production of methanol in the Western-Kazakhstan region
The construction of the complex for production of caustic soda, hydrochloric acid and coagulants SEZ NINT
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