Uzbekistan plans to increase production of gas chemical goods

Uzbekistan plans to achieve the result through implementation of projects on processing of hydrocarbon raw materials at Ustyurt and Mubarek gas chemical complexes and some ofther projects in oil and gas chemical industry.

Competition of construction and launch of these objects will allow to diversify oil and gas industry based on high technologies.

Implementation of planned projects will allow Uzbekistan to increase share of gas chemical products in total volume of industry’s production from current 10% to 37% by 2017.

In February 2008, Uzbekneftegaz and South Korean consortium created a joint venture UzKorGasChemical for construction of the Ustyurt Gas-Chemical Complex on the base of Surgil deposit. The consortium included Kogas, Lotte Daesan Petrochemical Corp. (in 2009, it was replaced with Honam Petrochemical), LG International Corp., SK Gas and STX Energy.

Uz-Kor Gas Chemical is a project company. 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.

Main resource base of the project is gas and gas condensate, extracted at Surgil field, license for development of which was presented to Uz-Kor Gas Chemical.

Uz-Kor Gas Chemical will produce and sell gas in market of Uzbekistan and produce gas chemical goods: polyethylene of high density, polypropylene and pyrolized gas and mazut for internal and external markets.

Сonstruction of Ustyurt Gas Chemical Complex was started in 2012 and it will be commissioned in early 2016.

The complex will annually process 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 100,000 tonnes of pyrolized petroleum.

The project cost is about US$4.16 billion. Foreign banks issued US$2.5 billion, while founders of Uz-Kor Gas Chemical will allocate US$1.41 billion. The Fund for Reconstruction and Development of Uzbekistan will issue US$100 million.

Uzbekneftefgaz is planning to start construction of gas chemical complex on the base Mubarek gas processing plant by 2015.

The project is implemented in cooperation with Indorma Group (Singapore).

In May 2012, Uzbekneftegaz and Indorama Group created an joint venture on parity terms to construct gas chemical complex.

The project is envisages creation of capacities on production of 492,000 tonnes of polythelene, 66,000 tonnes of gas condensate and 53,000 tonnes of pyrolysis fuel a year. The construction works will be conducted within three years.

The preliminary cost of the project is US$2.5 billion and it will be financed due to resources of Indorama, loan of Fund for Reconstruction and Development of Uzbekistan, and own funds of Uzbekneftegaz.