Uzbekistan to spend US$108.8m to external infrastructure of Kandym gas processing plant

In particular, Uzbekistan Temir Yollari will complete construction railway to the plant. The length of the railroad will make up 48.7 km. The cost of the project is US$50 million.

Uzbekenergo will construct external electricity supply for the plant for US$58.8 million, including 220 kV electricity supply line with the length of 90 km.

LUKOIL has been implementing the Kandym project in partnership with the National Holding Company Uzbekneftegaz since 2004 as part of the Kandym-Khauzak-Shady-Kungrad PSA. The Kandym group consists of 6 gas condensate fields – Kandym, Kuvachi-Alat, Akkum, Parsankul, Khoji and West Khoji.

The first phase of the project envisages mining and preparing 2.1 billion cubic meters of gas a year from Kuvachi-Alat field and Northern Shady area at Khauzak-Shady field with supply of gas to Mubarak gas processing plant.

The project envisages construction of Kandym gas processing complex. The capacity of Kandym gas processing plant will make up 8 billion cubic meters. The volume of investments estimated at US$3 billion. Kandym group includes six gas condensate fields. It is also planned to construct over 120 wells, gas compressor stations, points for collecting gas, terminals for loading liquid hydrocarbons and granulated brimstone, camp, electricity line, etc.

LUKOIL and a consortium headed by Hyundai Engineering (South Korea) signed a contract for procurement and construction of the Kandym Gas Processing Plant in Uzbekistan in February 2015. The contract cost is US$2.662 billion and envisages supply of equipment and construction of the complex.