Kazakhstan actively implements its Strategy for Industrial and Innovation Development

WASHINGTON. January 9. KAZINFORM. Kazakhstan?s Government is consistently implementing its policy of economic diversification. A key mid-term plan is the Strategy for Industrial and Innovation Development for 2003-2015 which offers international investors numerous opportunities to participate in important diversification projects in many sectors of Kazakhstan?s economy.

An important role in developing Kazakhstan?s oil and gas and petrochemical sectors belongs to the National Company ?KazMunaiGaz JSC? which is currently implementing two breakthrough projects under the Strategy: construction of Beineu ? Bozoi ? Akbulak main gas pipeline and the first integrated gas-and-chemical complex in Atyrau region. The Beineu ? Bozoi ? Akbulak gas pipeline is being constructed to address the needs of southern Kazakhstan?s regions in gas, reduce dependence on imported gas and strengthen the country?s energy safety. The Beineu ? Bozoi ? Akbulak main gas pipeline plays an important social role as it will allow to reach the following goals: - to provide gas supplies from major gas producing regions in western Kazakhstan to southern regions; - to decrease dependence on imported gas; - to provide gas supplies to the communities living along the pipeline. Besides, the project will have serious economic benefits as it will: - stimulate the construction of associated infrastructure facilities along the pipeline; - create additional work places; - provide an opportunity to export Kazakhstan?s gas to China through Kazakhstan ? China gas pipeline; - increase tax revenues and other budget payments. The goal of the project on First integrated gas-and-chemical complex in Atyrau region is to provide Tengiz gas processing and increase value added component in hydrocarbon products. This project is an important phase in creation of the National Industrial Petrochemical Park. Shareholders of the project are ?KazMunaiGaz Exploration Production, JSC? (50%), ?LyondellBasel? (25%) and ?SAT & Company, JSC? (25%). The complex will have the capacity to produce 800,000 tons of polyethylene and 450 thousand tons of polypropylene per year. Completion of the project, with total cost of $6.3 bln., is scheduled for 2013. Legal and technical advisors of the project are renowned British companies ? White & Case and Foster Wheeler. Both projects are considered as essential steps in diversification of Kazakhstan?s gas and chemical industry, Kazinform refers to the Kazakh Embassy in the USA.