China to invest $1.8bn in Kazakhstan's petrochemical hub
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China has committed $1.8 billion to develop Kazakhstan's petrochemical cluster in Atyrau region, according to Kazakh officials. The investment, announced during President Tokayev's visit to Beijing, targets the construction of a new polypropylene plant. The project is part of Tokayev's broader industrial diversification strategy.
The Investment Package
China's state-owned Sinopec and CNPC will jointly fund the $1.8 billion project, which includes a 500,000-ton-per-year polypropylene plant in the Atyrau Special Economic Zone. The facility is expected to create 2,500 jobs during construction and 800 permanent positions. Kazakhstan's national oil company KazMunayGas will hold a 40% stake in the venture.
Strategic Context
The investment aligns with President Tokayev's push to reduce Kazakhstan's reliance on raw material exports and develop higher-value petrochemical products. The Atyrau region already hosts the Tengiz oil field, operated by Chevron, and the new plant will use propane from local gas processing. China is Kazakhstan's largest trading partner, with bilateral trade reaching $41 billion in 2025.
What's Next
Construction is set to begin in early 2027, with completion targeted for 2030. It remains unclear how the project will affect Kazakhstan's carbon emissions targets or whether additional foreign investors will join.
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China to invest $1.8bn in Kazakhstan's petrochemical hub
