Kazakhstan is moving forward with plans to construct a large-scale ammonia and carbamide (urea) plant as part of an investment agreement authorized by a decree signed by Prime Minister Olzhas Bektenov. This strategic initiative is aimed at strengthening the country’s fertilizer production capacity, reducing import dependency, and boosting export potential.

On March 4, Bektenov held discussions with executives from ESTA Construction, instructing relevant ministries to finalize the investment agreement within two weeks. The project will be spearheaded by Qazesta Fertilizers, a joint venture between QazaqGaz and ESTA Construction. With an investment of $1.35 billion, the plant will be built in the Mangistau region, a location strategically chosen for its access to export routes via the Caspian Sea.

The construction phase is expected to span approximately three and a half years, generating around 3,000 jobs. Once operational, the facility will create 400 permanent positions, contributing to employment opportunities and economic growth in the region. The plant is projected to produce up to 700,000 tons of carbamide and 42,000 tons of ammonia annually, significantly enhancing Kazakhstan’s domestic fertilizer production.

Currently, Kazakhstan produces three types of fertilizers: ammonium nitrate, ammophos, and ammonium sulfate. However, with an estimated national demand of 3.2 million tons, domestic production covers only about half of this requirement. Establishing local urea production will be a crucial step toward reducing reliance on imports and ensuring a stable fertilizer supply for the country’s agricultural sector.

By increasing domestic output, the project will also promote food security and enable Kazakhstan’s farmers to access locally produced, high-quality fertilizers at competitive prices. Furthermore, the initiative aligns with the country’s broader economic goals of advancing its gas chemical industry and fostering the production of high-value-added goods.

Beyond meeting local demand, the plant’s strategic location in the Mangistau region positions it as a key player in the global fertilizer market. With direct access to the Caspian Sea, Kazakhstan will have enhanced export capabilities, enabling it to supply fertilizers to neighboring countries and beyond. This will not only improve the nation’s trade balance but also establish it as a competitive player in the global agricultural inputs market.

The development of this ammonia and carbamide plant represents a significant milestone in Kazakhstan’s industrial and agricultural growth strategy. By leveraging its natural gas resources for fertilizer production, the country is taking decisive steps toward self-sufficiency while unlocking new economic opportunities. With construction set to commence soon, the project is expected to drive long-term benefits, strengthening Kazakhstan’s position as a leading producer and exporter in the fertilizer industry.