Ustyurt Gas Chemical Complex to be launched in 2016 – report

After completion of construction and assembly works at the object, which will be completed by the end of 2015, and its launch in the beginning of 2016, the plant will annually process 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 paper said.

Introduction of new technologies must ensure extraction of natural gas and 97 percent of ethane, propane and other valuable components and launch modern production of multi-component plastic compounds of various kinds of plastic products for industrial and consumer purpose, production of which mainly conducted by small businesses.

Ustyurt Gas Chemical Complex will not only increase the volume of production of competitive import-substituting and export-oriented products, but also will be a good basis for the creation of many new production capacities and new jobs.

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 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. The construction of the complex was started in 2012.

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.