France expands influence in Central Asia through energy projects

By Asif Aydinli

Recently, an important meeting took place at the offices of KazMunayGas (KMG) between Chairman of the Board Askhat Khasenov and Vice President for Business Development of Air Liquide, Philippe Christodoulou. The key topic on the agenda was the discussion of a promising project to build a new hydrogen production unit at the Pavlodar Petrochemical Plant (PPCP). This project, which is of strategic importance, is aimed at modernizing Kazakhstan’s oil refining industry and enhancing the competitiveness of domestic petroleum products in the global market.

The significance of the new hydrogen unit cannot be overstated. With a capacity of 12,500 m³/hour, it will become an integral part of the production process at PPCP, increasing the output of light petroleum products such as gasoline and diesel fuel. Additionally, the project is focused on producing winter diesel fuel, which is especially important for the northern regions of the country where harsh climatic conditions demand the use of high-quality fuels. The joint venture Air Liquide Munay Tech Gases (ALMTG), created by KMG and Air Liquide, has taken responsibility for implementing this large-scale project.

Hydrogen plays a key role in the oil refining industry. It is used in processes such as hydrotreating crude oil to remove harmful impurities like nitrogen, sulfur, and metals. These processes enable the production of high-quality fuels that meet international environmental standards and ensure the reliability of modern car and aircraft engines. Currently, PPCP already operates a hydrogen unit with a capacity of 20,000 m³/hour. The new unit, which will complement the existing one, will provide PPCP with additional flexibility and reliability in its production processes, which, in turn, will allow the plant to steadily supply the domestic market in Kazakhstan with the necessary petroleum products.
The project to build a new hydrogen unit is part of a broader agreement between KMG and Air Liquide, signed in November 2022. Under the terms of the agreement, an investment of 100 million euros is planned for various oil and gas processing projects, with a significant portion of the funds allocated to the hydrogen project at PPCP. The new unit will increase the depth of oil refining at the plant from 84.2% to 88.3%, positively impacting the plant’s economic efficiency. The total cost of the project is estimated at 660 million euros, underscoring its scale and importance to the country’s economy.

Air Liquide, one of the world’s largest chemical companies, founded in 1902 in France, specializes in the production of industrial gases and holds a leading position in the global market, with a presence in 75 countries. Air Liquide Munay Tech Gases (ALMTG), a joint venture of Air Liquide (75%) and KazMunayGas (25%), was established in 2016 and has already successfully implemented several major projects in Kazakhstan. Among them are the operation of hydrogen and nitrogen production units at the Pavlodar and Atyrau refineries, as well as the construction and launch of a new nitrogen production facility at the Karabatan site near Atyrau.

The Pavlodar Petrochemical Plant (PPCP), one of Kazakhstan’s largest oil refineries, was built in 1978 and has since become a key player in the country’s petrochemical industry. The plant specializes in processing crude oil from Western Siberian fields and has a capacity of 6 million tons of oil per year. The plant’s structure includes units for primary oil processing, compounding and shipping of petroleum products, as well as deep processing of fuel oil and other heavy oil residues. PPCP produces a wide range of petroleum products, including automotive gasoline of various grades, diesel fuel, aviation kerosene, fuel oil, liquefied hydrocarbon gases, sulfur, bitumen, and petroleum coke.

Thus, the collaboration between KazMunayGas and Air Liquide, represented by Askhat Khasenov and Philippe Christodoulou, demonstrates Kazakhstan's commitment to innovation and sustainable development in the petrochemical industry. This project will not only strengthen Kazakhstan’s position in the domestic market but also create significant opportunities for exporting high-quality petroleum products to international markets. Moreover, the implementation of the hydrogen project at PPCP is of great importance for Kazakhstan’s energy security. Increasing the depth of oil refining will reduce dependence on imported petroleum products, which in the long term will strengthen the country’s economy and ensure stable industry growth.

Furthermore, the new project will make a significant contribution to improving the environmental situation in Kazakhstan. The introduction of modern hydrotreating technologies and the improvement of the quality of produced petroleum products will reduce emissions of harmful substances into the atmosphere, which will positively affect public health and the overall environmental situation in the region. In the context of a global transition to sustainable development and a reduction of carbon footprints, Kazakhstan is showing its readiness to actively participate in international environmental initiatives and a commitment to adhering to international environmental safety standards.

Collaboration with Air Liquide opens new horizons for Kazakhstan, providing access to advanced technologies and international expertise. This partnership not only fosters the development of the oil refining industry but also strengthens international ties, ultimately leading to the creation of a more stable and sustainable economy capable of withstanding the challenges of the modern world. It is clear that France is interested in expanding its influence in Central Asia, as it understands that the countries of Central Asia need new energy technologies due to the challenges they face with energy deficits.

News.Az