KMG PetroChem Presents Two Projects with Uzbekistan

Kazakhstan and Uzbekistan are moving deeper into processing. KMG PetroChem presented two promising petrochemical projects — the production of terephthalic acid and polyethylene terephthalate (TPA/PET), and the production of linear alkylbenzene in Karshi, DKNews.kz reports.

The projects were discussed in Tashkent during a meeting between Yeraly Tugzhanov, Ambassador Extraordinary and Plenipotentiary of Kazakhstan to Uzbekistan, Diaz Diyanov, Chairman of the Management Board of KMG PetroChem LLP, and Timur Seitbekov, Director of the company’s New Projects Department.

Two New Production Projects at the Center of Talks

The first project concerns the establishment of terephthalic acid and polyethylene terephthalate production — TPA/PET.

PET is widely used in packaging and other manufactured products. The project is not new to KMG PetroChem: the company has previously identified TPA/PET production as one of the promising areas of petrochemical development.

The second project involves the production of linear alkylbenzene (LAB) in Karshi.

At this stage, both are being discussed as prospective Kazakhstan-Uzbekistan projects. No investment volumes, design capacities or commissioning dates were announced following the meeting.

Raw Materials and Sales Channels Become Key Issues

The talks covered more than just the location of future production facilities.

The parties separately discussed securing the raw material base, establishing stable sales channels, the current status of the projects, and further interaction with relevant government agencies and companies in Uzbekistan.

These factors will determine the practical viability of petrochemical production. A plant requires a guaranteed supply of raw materials, while finished products need a stable market capable of absorbing output on a regular basis.

The discussion is therefore moving from the general idea of industrial cooperation toward the actual structure of the future production chain: raw materials, location, processing, and sales.

Kazakhstan Seeks More High Value-Added Production

Another key focus of the meeting was the expansion of Kazakhstan-Uzbekistan industrial cooperation in petrochemicals.

The parties discussed the development of joint production chains and an increase in the output of high value-added products. This approach would allow the two countries to build cooperation not only around raw material trade, but also around deeper processing.

For KMG PetroChem, this is consistent with the company’s broader strategy. KMG PetroChem LLP is a wholly owned subsidiary of KazMunayGas and coordinates the group’s petrochemical projects.

Kazakhstan is also expanding its petrochemical infrastructure domestically, including projects related to polyethylene and PET production.

Embassy to Support Cooperation with Uzbek Partners

Yeraly Tugzhanov confirmed Kazakhstan’s interest in further advancing mutually beneficial joint projects.

The Embassy of Kazakhstan in Uzbekistan also expressed readiness to support KMG PetroChem in its interaction with relevant Uzbek government bodies and companies.

The next key issues for both projects will be their practical parameters: the raw material base, location of production facilities, sales markets, and the model of participation by the partners.

Earlier, we wrote about how Kazakhstan is expanding deep-processing production and which major projects are shaping the country’s emerging petrochemical sector: From Raw Materials to High Value-Added Products: Kazakhstan’s Petrochemical Strategy.