Kazakhstan to build $1.35 billion fertilizer plant to boost domestic production

ASTANA, Kazakhstan (MNTV) — Kazakhstan has approved the construction of a $1.35 billion fertilizer plant in the Mangistau region, aiming to expand domestic production and reduce reliance on imports. 

The project, a joint venture between Kazakhstan’s national gas company QazaqGaz and Turkish construction firm ESTA Construction, will be overseen by their newly formed company, Qazesta Fertilizers Ltd.

The facility will produce up to 700,000 tonnes of urea and 42,000 tonnes of ammonia annually. With its strategic location near the Caspian Sea, the plant is expected to facilitate exports while strengthening Kazakhstan’s gas chemical industry. 

According to Times of Central Asia, construction will take three and a half years, generating 3,000 jobs during the building phase and 400 permanent positions upon completion.

Officials emphasize that the plant will play a crucial role in reducing Kazakhstan’s fertilizer deficit. Currently, the country produces only half of the 3.2 million tonnes needed annually, relying heavily on imported nitrogen fertilizers, which accounted for 57.8% of the market in 2024.

Despite its vast agricultural sector, Kazakhstan’s fertilizer use remains among the lowest in the region. 

According to Energyprom.kz , citing UN Food and Agriculture Organization (FAO) data, nitrogen fertilizer application has not exceeded 4.0 kg per hectare since 2000, and dropped to just 2.4 kg in 2022. In contrast, Uzbekistan applied 187.2 kg per hectare, while Russia used 17.6 kg. Phosphate fertilizer usage in Kazakhstan also lags behind, at 1.33 kg per hectare compared to Russia’s 5.91 kg.

Adding to the challenge, domestic fertilizer production declined in 2024. Total output fell by 9.3% to 367,500 tonnes, with nitrogen fertilizer production dropping 11.4% to 345,500 tonnes. Although phosphate fertilizer production increased by 47.1% to 22,000 tonnes, it remains far below national demand.

Kazakhstan’s fertilizer exports nearly doubled in 2024, reaching 214,400 tonnes. Major buyers included Brazil (187,600 tonnes), Poland (92,500 tonnes), Ukraine (87,600 tonnes), and Russia (67,400 tonnes). However, declining global prices led to a 13.5% drop in export revenue.

Geopolitical factors continue to shape fertilizer markets. While U.S. imports of Russian fertilizers rose by 20% in 2024, the European Union is considering new duties on Russian and Belarusian fertilizers, sparking concerns over rising costs.

In this evolving landscape, Kazakhstan’s new fertilizer plant is set to strengthen its agricultural sector, reduce dependency on imports, and enhance its role as a key regional supplier.