CNPC, KMG to build $1.25 bln urea plant in Kazakhstan

ASTANA. July 15 (Interfax) - KazMunayGas JSC (KMG) and China's CNPC are implementing a project for a gas chemical complex producing urea fertilizer in Kazakhstan, the KMG press service said.

It was noted that the relevant framework agreement was signed in Astana during the Central Asia-China Forum on Industrial and Investment Cooperation, held in June 2025.

"This will be the first domestic plant producing urea with a high nitrogen content of 46%, meeting the best world standards. The complex will be located in the Mugalzhar district of the Aktobe region and will produce up to 800,000 tonnes of urea per year. The total investment is estimated at $1.25 billion," KMG said.

The Energy Ministry said the plant would be located near the Zhanazhol Gas Processing Plant, which would provide it with up to 600 million cubic meters of gas per year.

The project is included in the Aktobe Special Economic Zone. This year, in cooperation with the National Academy of Sciences under the President of Kazakhstan, agricultural testing of the fertilizer was conducted in four regions of the country.

KMG said the project was vital for the country's agro-industrial complex. Kazakhstan possesses about 35 million hectares of arable land, creating enormous potential for increasing agricultural production volumes and boosting exports. However, realizing this potential directly depends on the availability and timely application of nitrogen fertilizers, KMG said.

Currently, there is no domestic urea production in the country, and farmers' needs are met through imports. "The construction of a domestic plant will fully supply the internal market with the projected demand of about 300,000 tonnes by 2029. The surplus will be exported to priority markets in Europe, Turkey, India, and other countries," KMG said.