ASTANA – Nearly 5,000 companies with Chinese participation are registered in Kazakhstan. The number of such enterprises has recently surged, reflecting China’s strategic interest in the country’s resource and industrial sectors. Chinese companies mainly focus on the mining, energy, and manufacturing industries, according to a Dec. 20 report by Halyk Finance Research.
Photo credit: khorgos.kz.
Chinese joint ventures
Chinese companies, including the China National Petroleum Corporation (CNPC) and Sinopec, are deeply involved in Kazakhstan’s oil and gas industry. They account for approximately 24% of the country’s total oil production. These companies target mature fields such as Zhanazhol and those in the Mangystau and Kyzylorda Regions, using enhanced oil recovery technologies to prolong their operational life.
Key examples are CNPC-AktobeMunaiGas and MangystauMunaiGas, major players in oil and gas production; Buzachi Operating LTD, which successfully developed the Northern Buzachi field; Petro Kazakhstan and the Aktau bitumen plant, which invest in oil refining; and a logistics terminal in Lianyungang, a transport hub linking Kazakhstan and China.
Joint Projects program
Kazakhstan and China launched a joint projects program in 2015 to implement 52 projects worth $21.1 billion in sectors such as metallurgy, oil refining, chemical production, mechanical engineering, electric power, and agriculture. From 2015 to 2022, 25 projects valued at $7.4 billion were completed. Nine additional projects worth $2.3 billion are underway, and 18 are under consideration.
Among the major projects implemented are a $2.6 billion collaboration between Kazakhstan Petrochemical Industries and China National Chemical Engineering Co. on polypropylene production and a $2.1 billion investment in the reconstruction of the Shymkent Oil Refinery.
Government development plans
Baiterek National Management Holding has partnered with Chinese financial institutions such as the China Development Bank and China International Capital Corporation to finance projects in Kazakhstan. As of July 2024, 139 of the 707 projects in Kazakhstan’s national pool involve foreign participation.
Of the total number of foreign projects, China is the second-largest foreign investor in Kazakhstan, with 30 projects worth approximately $5.2 billion. Russia leads with 32 projects worth $12.5 billion.
