China Expands Strategic Investments in Kazakhstan's Resource and Industrial Sectors
China’s strategic interest in Kazakhstan’s resource and industrial sectors has intensified, with nearly 5,000 companies with Chinese participation now registered in the country. This surge reflects China's growing engagement in Kazakhstan’s economy, particularly in the mining, energy, and manufacturing industries, as detailed in a Dec. 20 report by Halyk Finance Research.
Key Chinese Stakeholders in Kazakhstan’s Oil and Gas Industry
Chinese firms have become major players in Kazakhstan’s energy sector. State-owned enterprises such as the China National Petroleum Corporation (CNPC) and Sinopec have made substantial investments in the country's oil and gas fields. Together, these companies account for about 24% of Kazakhstan’s total oil production. Their focus is primarily on mature fields, including Zhanazhol and sites in the Mangystau and Kyzylorda Regions, where they deploy enhanced oil recovery technologies to extend field life.
Notable joint ventures include CNPC-AktobeMunaiGas and MangystauMunaiGas, two key contributors to oil and gas production. Other significant investments include Buzachi Operating LTD’s development of the Northern Buzachi field and Petro Kazakhstan’s involvement in refining, alongside the Aktau bitumen plant.
Joint Projects and Strategic Collaborations
Since the launch of a joint projects program in 2015, Kazakhstan and China have implemented a range of initiatives across diverse sectors. The program, which includes 52 projects valued at $21.1 billion, covers industries such as metallurgy, oil refining, chemical production, mechanical engineering, electric power, and agriculture. Between 2015 and 2022, 25 projects worth $7.4 billion were completed, and 18 others are under consideration.
Significant projects include the $2.6 billion collaboration between Kazakhstan Petrochemical Industries and China National Chemical Engineering Co. for polypropylene production and a $2.1 billion investment in the reconstruction of the Shymkent Oil Refinery.
Foreign Investment Landscape
Baiterek National Management Holding has partnered with Chinese financial institutions like the China Development Bank and China International Capital Corporation to fund these initiatives. As of July 2024, 139 out of 707 projects in Kazakhstan’s national project pool involve foreign investment, with China ranking as the second-largest foreign investor in Kazakhstan.
China is actively involved in 30 projects valued at approximately $5.2 billion, following Russia, which leads with 32 projects worth $12.5 billion. This strategic partnership between Kazakhstan and China continues to play a pivotal role in the development of Kazakhstan’s industrial and resource sectors.
Photo credit: khorgos.kz.
