Project on construction of Ustyurt Gas Chemical Complex named as international deal of the year

The edition Infrastructure Journal handed over award “The Global Deal of 2014 in oil and gas sphere to the project on construction of Ustyurt Gas Chemical Complex on 13 March 2014.

As earlier reported, the project received awards of information-analytical agencies PFI Thomson Reuters and PFM Euromoney in 2013.

The project on construction of Ustyurt Gas Chemical Complex on the base of Surgil field, which was included in the ranking, was named as the largest project in developing world.

Ustyurt Gas Chemical Complex will ensure processing of 4.5 billion cubic meters of gas and produce 4 billion tank gas, 400,000 polyethylene and 100,000 tonnes of polypropylene, as well as 110,000 tonnes of pyrolized petroleum. The volume of exports makes up US$750 million. The enterprise will export products to Europe, Eastern and Southern-Eastern Asia. It is expected that Ustyurt Gas Chemical Complex will be commissioned in early 2016.

Uz-Kor Gas Chemical was founded by Uzbek and Korean companies in May 2008 to develop, finance, construct and exploitation of integrated gas and oil processing project in Ustyurt region of Uzbekistan.

Uzbekneftegaz owns 50% stake in the joint venture, while Uz-Kor Gas Chemical Investment holds 50% share. Korea Gas Corporation (KOGAS), Honam Petrochemical and STX Energy are Korean founders of the venture.

The project cost is US$3.9 billion. The project “Construction of Ustyurt gas chemical complex at the base of Surgil complex” was developed in cooperation between Uzbekistan and South Korea. The project is endorsed by the governments of two states. The project participants will allow US$1.4 billion and attract US$2.5 billion from financial institutions to implement the project.

Asian Development Bank, leading European and Asian commercial banks like Korean Financial Corporation, Korean Development Bank, ING Bank, Siemens Bank, Credit Suisse, Bayern LB, KfW IPEX, Nordea and Swedish bank SEK, as well as insurance companies are participating in the financing of the project.