Samsung to build pyrolysis plant in Uzbekistan

Samsung and Uzbekneftegaz signed a memorandum on participation of the South Korean firm in the project, within which Samsung will prepare a technical proposal on realization of the project by April 2016. Afterwards, the sides will consider further stages of cooperation.

Sputnik news agency reported that the memorandum was signed within the International Investment Forum in Tashkent, which was held on 5-6 November.

Construction of the plant envisages the creation of capacities for the production of aromatic hydrocarbons ─ 30,000 tonnes of benzene, 20,000 tonnes of toluene and 5,000 tons of xylene. Ustyurt Gas Chemical Complex will supply raw materials to the plant. The project will be implemented within three years.

The project cost is estimated at US$300 million and will be financed due to resources of Uz-Kor Gas Chemical and the loans of the Uzbek side.

Kor-Uz Gas Chemical completed construction of Ustyurt Gas Chemical Complex in October 2015. Ustyurt Gas Chemical Complex will ensure processing of 4.5 billion cubic meters of gas and produce 3.7 billion tank gas, 387,000 polyethylene and 83,000 tonnes of polypropylene, as well as 102,000 tonnes of pyrolized petroleum and other products.

The cost of the project is US$4.16 billion. The project participants will allocate US$1.4 billion and attract US$2.5 billion from financial institutions to implement the project.

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), Lotte Chemicals and STX Energy are Korean founders of the venture.