Uzbekistan GTL to correct schedule of implementation of project on GTL plant construction

Sputnik news agency reported quoting source in the Uzbek Government said the price of oil, to which the project was linked, was volatile during the year, while investors and banks react frostily to such projects.

The source said that creation of international banking consortium is going difficult and the schedule of realization of the project will be corrected.

Uzbekneftegaz, Petronas and Sasol Synfuels International (PTY) Limited signed charter and constituent agreement of joint venture Uzbekistan GTL in November 2009. Currently Sasol and Uzbekneftegaz hold 44.5% stake in the project, while Petronas – 11%.

In summer 2013, Sasol decided to cut its share in the project up to 25.5% to the beginning of the plant construction. Other part of stakes can be distributed among other stakeholders or new participant of the venture.

The plant will process 3.5 billion cubic meters of gas and produce 863,000 tonnes of diesel fuel, 304,000 tonnes of aviation kerosene, 395,000 tonnes of naphtha and 11,200 tonnes of liquefied gas. Hyundai Engineering & Construction (South Korea) will construct the technological part of the plant.

The project with the cost of US$5.6 billion will be financed due to own resources of the venture’s founders, consortium of banks and financial institutions, which issue loans on project financing terms.