Air Liquide will invest €70 million in Kazakhstan to supply industrial gases for Silleno’s polyethylene plant, strengthening the country’s petrochemical industry.
Air Liquide has announced a significant expansion of its operations in Kazakhstan by signing a long-term agreement with Silleno LLP, one of the country’s leading chemical manufacturers. The agreement underscores Air Liquide’s continued commitment to supporting Kazakhstan’s industrial development while reinforcing its position as a key supplier of industrial gases in Central Asia. Through its joint venture, Air Liquide Karabatan Tech Gases LLP (ALKTG), the company will invest approximately €70 million to supply high-purity nitrogen and compressed dry air to Silleno’s upcoming world-scale polyethylene production facility.
The investment represents another milestone in Air Liquide’s long-term growth strategy in Kazakhstan, where the Group has maintained an industrial presence since 2016. It also demonstrates the company’s confidence in the country’s rapidly expanding petrochemical sector, particularly in the Karabatan basin of the Atyrau region. Silleno’s polyethylene project is expected to play a transformative role in developing the area into a globally competitive petrochemical hub, significantly strengthening Kazakhstan’s downstream chemical manufacturing capabilities.
As part of the agreement, ALKTG will design, construct, own, and operate two advanced nitrogen production units. These facilities will employ state-of-the-art technology to deliver high-purity nitrogen and compressed dry air while maintaining high energy efficiency. Once operational, the infrastructure will rank among the largest industrial gas production facilities in Central Asia, reflecting the scale and strategic importance of the investment.
Construction and commissioning of the nitrogen production units will proceed in line with the development schedule of Silleno’s polyethylene complex. Commercial operations and the initial supply of industrial gases are expected to begin by the end of 2028, ensuring the polyethylene plant has a reliable and continuous supply of critical process gases from the start of production.
The new gas production facilities will be established within the National Industrial Petrochemical Technopark (NIPT) Special Economic Zone in Karabatan. This location is strategically positioned close to ALKTG’s existing Air Separation Unit (ASU), which has been supplying nitrogen to Kazakhstan Petrochemical Industries (KPI) since its commissioning. The proximity of the new infrastructure to existing assets will create operational efficiencies and strengthen industrial synergies across the Karabatan basin.
This latest project builds upon Air Liquide’s initial investment in the region made in 2019 and further expands the footprint of its joint venture in Kazakhstan. By leveraging existing infrastructure and technological expertise, Air Liquide aims to enhance operational reliability while supporting the country’s ambitions to develop a modern and integrated petrochemical industry.
Commenting on the agreement, Émilie Mouren-Renouard, a member of Air Liquide’s Executive Committee responsible for overseeing operations in Central Asia, described the project as another major milestone in the company’s long-standing commitment to Kazakhstan. She highlighted the importance of strengthening Air Liquide’s strategic partnership with KazMunayGas, the company’s long-term partner in the country and a major stakeholder in the Silleno project. According to Mouren-Renouard, the investment reflects Air Liquide’s strategy of combining advanced industrial technologies with meaningful regional economic development, helping accelerate Kazakhstan’s emergence as a leading petrochemical center in Central Asia while supporting sustainable industrial growth and long-term value creation.
Impact on Products and Chemical Commodity Prices (150 words)
Air Liquide's €70 million investment to supply high-purity nitrogen and compressed dry air to Silleno's polyethylene complex is expected to have a positive long-term impact on Kazakhstan's petrochemical industry. The project will ensure a stable supply of industrial gases, improving operational reliability and production efficiency at the world-scale polyethylene facility scheduled to begin operations by the end of 2028. As polyethylene output increases, downstream sectors such as packaging, construction, automotive, and consumer goods are likely to benefit from improved regional supply.
For chemical commodities tracked by ChemAnalyst, the immediate price impact is expected to be minimal, as commercial production remains several years away. However, once operational, the additional polyethylene capacity could increase regional supply, putting moderate downward pressure on polyethylene prices, particularly in Central Asia and neighboring export markets. Demand for industrial gases such as nitrogen will rise, but their prices are likely to remain stable due to Air Liquide's dedicated production facilities. Feedstocks such as ethylene may witness stronger long-term demand, supporting their consumption, while overall polymer supply growth could enhance market competition and improve supply security.
