Petrochemicals

Polypropylene production (KPI)

Kazakhstan Petrochemical Industries Inc. (KPI Inc.) operates Kazakhstan’s first and only integrated gas chemical complex in the Atyrau Region launched in 2022. The project implemented in partnership with major industry players has the following ownership structure: KMG – 49.5%, SIBUR Holding – 40%, Samruk‑Kazyna Ondeu – 9.5%, Firm Almex Plus – 1%.

2025 production highlights

In 2025, the complex demonstrated substantial growth of operating metrics.

  • Output: 377 thous. tonnes of polypropylene.
  • Product range expansion: 15 grades produced, including five new ones.
  • Import substitution: the complex fully met domestic demand by supplying 39 thous. tonnes of products against the total market volume of 58.3 thous. tonnes.
Exports

In 2025, a total of 326 thous. tonnes were exported, with the primary markets being China, Europe, Türkiye, and Russia. The products have successfully passed homologation, confirming compliance with all the necessary safety and quality standards, and are sought after by international processing companies.

Partnership with international carriers

We organised export routes to China, Türkiye and Europe, which bolstered supply chain stability.

Polypropylene supply by country, tonnes
Destinations 2023 2024 2025
Kazakhstan 9,516 22,887 38,810
China 95,598 89,001 82,014
Europe 33,297 29,413 110,809
Türkiye 11,524 63,756 74,630
Russia 25,409 44,237 55,335
Total 175,344 249,294 361,598
Impact on the domestic market

After the plant launch and the start of KPI product sales in 2022, the share of local polypropylene in Kazakhstan increased to 67%, with imports shrinking to a negligent 8%.

Overdrive Programme

The programme provides special commercial terms to incentivise processing companies:

  • Import Substitution Overdrive – product support for import substitution;
  • Export Overdrive – ensuring competitive edge in international markets;
  • Industry Overdrive – competitive edge of value proposition over the traditional one;
  • Investment Overdrive – compensation for investments and support for lending interest rates.
Prices

The average market price for polypropylene in Kazakhstan in 2025, including VAT, increased by 10.5% versus 2024 and reached KZT 559.6 thous. per tonne (compared to KZT 506.6 thous. per tonne in 2024), reflecting inflation and higher market demand.

Logistics and warehouse infrastructure

Logistics optimisation:

  • the plant secured deliveries on FCAFCA means that seller is responsible for completing the export formalities and delivers the goods to the buyer’s designated carrier at the agreed place and point. terms (KPI warehouses in Atyrau, Almaty and Astana);
  • Opening of a warehouse in Almaty helped:
    • increase sales in the southern regions of Kazakhstan (growth in December by 979 tonnes);
    • increase sales in the northern regions of Kazakhstan (growth in December by 264 tonnes);
    • reduce logistics costs for processing companies that do not have access to railway infrastructure.

Supplies to warehouses in Almaty and Astana in 2025 stood at 6.5 thous. tonnes and 1.4 thous. tonnes respectively.