Olzhas Bektenov visited the polypropylene production plant of Kazakhstan Petrochemical Industries Inc. (KPI LLP). The integrated gas-chemical complex is the country’s first project for processing raw materials from the Tengiz field, with an annual capacity of 500,000 tons of polypropylene. Since the plant’s launch, it has produced 341.4 thousand tons of granulated polypropylene.
The Prime Minister was informed that since the plant’s commissioning in 2022, polypropylene prices in Kazakhstan have steadily decreased — from 650,000 tenge at the start of operations to the current 450,000 tenge per ton. According to Market Report, this is the lowest price compared to Russia ($1,280 per ton), Belarus ($1,295), and Uzbekistan ($1,090). The plant’s main goal is to meet domestic demand. In 2022, KPI accounted for only 2% of Kazakhstan’s polypropylene market, while imports reached 63%. By the second quarter of this year, the situation had changed significantly: the plant’s share rose nearly 25-fold to 49%, and imports dropped to 22%. Over the past six months, KPI produced 133,000 tons of polypropylene, with a 2025 target of 507,000 tons. Kazakhstan’s plant surpasses the capacities of Uzbekistan (100,000 tons) by 5 times, Turkey (144,000 tons) by 3.5 times, Turkmenistan (171,000 tons) by nearly 3 times, and Azerbaijan (180,000 tons) by 2.7 times.
“In the domestic market, we must strive to ensure low-cost product distribution. Our top priority is to support domestic producers. It is important that small and medium-sized enterprises continue to grow using your products. Therefore, finished goods should primarily be supplied to the domestic market, with any surplus directed to export. This policy must be enforced more strictly, as the KPI plant plays a crucial role in the development of the national economy,” — emphasized Olzhas Bektenov.
At the plant, raw materials undergo deep processing. The facility produces 10 grades of polypropylene, essential for the construction, medical, automotive, food, and textile industries.
During his visit to the polypropylene production facility, the Prime Minister was also presented with the Dossor–Atyrau highway reconstruction project. The section of the national highway Aktobe–Atyrau–Astrakhan, 86 km long, is proposed to be expanded to four lanes. The polypropylene produced at the KPI plant is used in road construction to improve strength and performance characteristics overall. Thus, the use of the plant’s products is planned to be further scaled up within the construction industry.