BAKU, Azerbaijan, Apr.11
Trend:
Kazakhstan’s government has announced a substantial increase in the volume of production of petrochemical products, Trend reports citing the Kazakh media.
“There are currently 5 plants for the production of petrochemicals with a total capacity of approximately 870,000 tons in the country. Over the past 4 years (2016 - 2020), the volume of production increased fourfold and amounted to 360,000 tons, of which 80 percent were exported. Along with this, reaching 100 percent of the design capacity of existing plants, completion in 2021 of the construction of three plants (for the production of polypropylene with a capacity of 500,000 tons per year, for the production of technical gases, for the production of octane-enhancing additives for gasoline with a capacity of 57,000 tons per year), said the Deputy Prime Minister of Kazakhstan Roman Sklyar.
The deputy PM also added that the implementation by 2025 of two more potential projects, namely, for the production of polyethylene terephthalate with a capacity of 430,000 tons per year, and for the production of methanol with a capacity of 130,000 tons per year, will increase the volume of production of petrochemical products to 2 million tons by 2025, and hereby topping the 2020 figures by 5.5 times.
“The planned projects have off-take contracts (for export and for the domestic market), which is one of the criteria when choosing investors. Generally, the presence of a stable global demand for petrochemical products planned for production in Kazakhstan has been confirmed by several world agencies, such as IHS, McKinsey global consulting company and Boston Consulting Group (BCG),” said the deputy PM.
“Thus, according to analysts' forecasts, by 2030, the demand for polypropylene will approach 100 million tons per year, while the supply in the world will make up 90 million tons per year, taking into account the existing and commissioned capacities. Global demand for polyethylene is growing by an average of 4 percent per year and will reach 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 added.