Tashkent, Uzbekistan (UzDaily.com) -- A gas chemical complex in Bukhara region worth US$2.5 billion presented at a business forum.

The project for the construction of a gas chemical complex based on MTO technology involves the creation of more than 2,300 jobs and US$2 billion in tax revenues. It was also announced the creation of a free economic zone for the mining and chemical complex in the Karakul district of the Bukhara region.

Representatives of business and government organizations took part in the business forum "Gas chemical complex MTO: technologies of New Uzbekistan", which was held at the Humo Arena.

Minister of Energy of Uzbekistan Alisher Sultanov and Deputy General Director of SEG, Project Director of the Gas Chemical Complex MTO Masrur Shakirov made welcoming addresses to the participants - representatives of government agencies, oil and gas companies, suppliers and potential partners. Their attention was presented with information on the construction and operation of a gas chemical complex based on MTO technology ("methanol to olefins"), located in Karakul, Bukhara region of Uzbekistan. Also at the forum was a representative of Wood (Italy) - the general designer of the complex.

The US$2.5 billion project is expected to be commissioned in the fourth quarter of 2023 and will provide the Uzbek industry with olefinic hydrocarbons, which are strategically important raw materials for the country. The gas chemical complex is designed for processing domestic raw materials on the basis of a licensed technological process for converting methanol into olefins, which has no analogues in the CIS region. After completion of construction, the complex will significantly accelerate import substitution in Uzbekistan, ensure diversification of the economy, and will also contribute to the development of related industries in the Republic.

To stimulate economic growth in Karakul district, a Free Economic Zone (FEZ) was created, attracting domestic and foreign manufacturers with a number of tax, financial and industrial benefits. On the territory of the FEZ, an English legal regime will be established, and it will also be allowed to conduct business in foreign currency. All enterprises are guaranteed uninterrupted supply of natural resources, including electricity - partly from renewable energy sources.

According to preliminary estimates, the new plant, as well as related industries on the territory of the FEZ, will create more than 2,300 new jobs and will bring more than US$2 billion in additional tax revenues over the next 20 years.

Deputy General Director of SEG, Project Director of the Gas Chemical Complex MTO Masrur Shakirov, said: “The project of a gas chemical complex based on MTO technology is a vivid example of a new Uzbekistan. Deep processing of hydrocarbon raw materials, the production of unique gas chemical products that meet modern requirements is an opportunity to provide the population of the country and the economy with strategically important raw materials, which will not only become the basis for the development of new businesses in our country, but will also ensure high rates of economic growth and increase the competitiveness of the national economy. The project is unique and today has no analogues in the CIS countries. "

Andrea Ferrera, CTO, Wood, Italy, said: “The MTO initiative is a great example of a ‘fit for purpose’ project that meets the country’s economic and social needs through the use of local resources. Wood is proud to have been a part of this initiative since its inception, helping to develop the country and supporting the client to implement a project using modern green technologies through efficient and sustainable engineering solutions.”

One of the tasks of the forum was to familiarize potential buyers with the products of the complex. At the forum, memorandums of understanding were signed with a number of companies - local producers and international waiters:

KTM SA (Turkey), one of the largest trading companies in the region with extensive experience in logistics and trade in polymers and petrochemical products.

SAG, one of the leading carpet manufacturers in the CIS and one of the five leaders in the industry in the world.

International Beverages Tashkent, the official bottleler of PepsiCo in Uzbekistan for the production of non-alcoholic drinks of famous international brands.

Urgaz, one of the leading textile manufacturers in the CIS and Central Asia.

ETS U-STAN (Sweden, Russia), one of the largest trading companies in the region.

Juan Miguel Gonzalez, Director of Large-Scale Projects Development in Europe, Africa, Russia and the CIS, Air Products and Chemicals, Inc. (USA), emphasized in his speech: “As a company we always focus on long-term and sustainable cooperation with our key partners around the world. And we are inspired by the future of our company both in Uzbekistan and in the whole Central Asia region. Today we are pleased to speak at this forum as we explore the potential of investment opportunities for gas monetization through the use of our innovative technologies for the production of industrial gases, knowledge, experience and expertise.”

The production capacity of the new complex will be up to 720,000 tons of finished polymer products, which will satisfy all the needs of the domestic market. The plant will produce a variety of products from the main components ethylene and propylene, which will replace the various raw materials currently imported and will significantly contribute to the economic growth of Uzbekistan.

More than 70% of the plant’s products will be sold on the domestic market, which will allow Uzbekistan’s industry to meet domestic demand, as well as export various raw materials to the CIS countries, China, Turkey and the countries of Southeast Asia.

Based on the technology of the Chemtex Global Corporation (USA), the plant will produce polyethylene terephthalate (PET). PET is a highly demanded polymer that is now fully imported to Uzbekistan. It is widely used in the textile and food industries. The monoethylene glycol used for PET production will be produced using the technology of Scientific Design Company Inc. (USA). This polymer will meet the demand for hydraulic fluids / solvents and antifreezes.

The production of low density polyethylene will also be for the first time established in the Republic on the equipment and technology of the company Versalis (Italy) using a tubular reactor under ultrahigh pressure. This technology allows one unit to consistently produce two types of end products - low density polyethylene and ethylene vinyl acetate.

Low density polyethylene is a vital material in many industries including agriculture, food processing and parapharmaceuticals.

Ethylene vinyl acetate is unique for the Uzbek market and the entire CIS region. It also has many different uses and is in high demand, especially in the production of solar panels.

Polypropylene production will be carried out in cooperation with W. R. Grace & Co. (USA), a world leader in this field. Polypropylene is a versatile and important raw material used in the textile, parapharmaceutical, electrical and automotive industries.

The gas chemical complex project also includes plans to create a new educational institution in Samarkand - the International Technical University, which will train specialists for this industry.

The project envisages minimizing the impact on the environment. Compliance with all international environmental standards is monitored and confirmed by globally recognized environmental consultants Mott MacDonald Group Limited (UK).