The short version: another Chinese-funded chemical project is under way in southern Kazakhstan. In the special economic zone of Sauran district, Turkestan region, Turan Chemical Company LLP has laid the foundation of a synthetic ammonia and urea plant. The regional akimat puts the investment at $200 million, roughly 88.38 billion tenge.
Capacity is counted for two products. At design output the plant should make 250,000 tonnes of synthetic ammonia and about 300,000 tonnes of urea a year. The region expects 300 new jobs. The investor is an entrepreneur from China, as reported by Kazinform and several local outlets.
The background is simple. On 25 September Almaty hosted the Kazakhstan-China Investment Forum, where the two sides signed a package of commercial documents. One of them was an agreement between the Turkestan regional akimat and Turan Chemical Company to build a urea fertiliser plant. The list published at the time gave no cost or capacity.
The numbers have shifted, and investors should keep that in mind. As DKNews pointed out, the project was first presented with 70 billion tenge of investment, 300,000 tonnes of combined capacity and 150 jobs. The akimat now cites $200 million, separate ammonia and urea capacities and 300 jobs. Final parameters are best checked against official documents from the company or the SEZ management.
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Why fertiliser? At the ceremony the regional governor, Nuralkhan Kusherov, said much of domestic fertiliser demand is met by imports, so local production matters for agriculture. Turkestan is a cotton and grain region, and urea is one of the most widely used nitrogen fertilisers, so the plant will sit close to its customers.
For Chinese companies, a few points stand out. First, the plant is inside an SEZ, where tax and land terms follow the zone's founding documents and the investment agreement. Second, only days passed between the forum signing and the ground-breaking, which suggests the regional authorities are moving quickly. Third, ammonia production depends heavily on gas feedstock and power; how gas supply, tariffs and environmental review will be handled has not been made public.
Still undisclosed: the start-up year, technology and equipment suppliers, the financing structure, and whether output will go mainly to the domestic market or abroad. We will keep following the project.
Sources:
Kazinform, https://www.inform.kz/ru/zavod-poproizvodstvu-ammiaka-ikarbamida-za200mln-nachali-stroit-vturkestanskoy-o-c917c4f8
DKNews, https://dknews.kz/ru/v-strane/406293-v-turkestanskoy-oblasti-stroyat-zavod-udobreniy-za
APK News (citing NCE Atameken), https://apk-news.kz/news/item-7309
Key facts
- Chinese-owned Turan Chemical Company has held a groundbreaking ceremony for a synthetic ammonia and urea plant in the economic special zone in Shaul District of Turkestan Region.
- According to figures released by the Turkestan Regional Government, the project investment is US$200 million, equivalent to approximately KZT 88.38 billion.
- The project has a designed annual capacity of 250,000 tonnes of synthetic ammonia and approximately 300,000 tonnes of urea and is expected to create 300 new jobs.
- The agreement between the Turkestan Regional Government and Turan Chemical Company was signed on September 25 at the Kazakhstan-China Investment Forum.
- Earlier figures released for the project were an investment of KZT 70 billion, combined production capacity of 300,000 tonnes, and 150 jobs, which differ from the current figures.
- The project's commissioning date, technology and equipment suppliers, financing structure, and whether the products will be supplied domestically or exported have not yet been announced.
FAQ
Where is the project located, and who is investing in it?
The project is located in the economic special zone in Shaul District of Turkestan Region. It is being invested in and developed by Turan Chemical Company as a synthetic ammonia and urea plant.
What are the project's investment amount and production capacity?
According to figures released by the regional government, the investment is US$200 million (approximately KZT 88.38 billion). The designed annual capacity is 250,000 tonnes of synthetic ammonia and approximately 300,000 tonnes of urea, with 300 new jobs planned.
When was the project agreement signed?
The agreement was signed on September 25 by the Turkestan Regional Government and Turan Chemical Company at the Kazakhstan-China Investment Forum held in Almaty.
Are the earlier figures consistent with the current figures?
No. Earlier figures were an investment of KZT 70 billion, combined production capacity of 300,000 tonnes, and 150 jobs. The current figures released by the regional government are US$200 million, separate capacities for synthetic ammonia and urea, and 300 jobs.
When will the plant begin operations?
The commissioning date has not yet been announced. Public information also does not specify the technology and equipment suppliers, the financing structure, or whether the products will mainly be sold domestically or exported.