Uzbekistan receives loans for US$2.54bn to construction of Ustyurt Gas Chemical Complex
31/05/2013 14:32
Uzbekistan receives loans for US$2.54bn to construction of Ustyurt Gas Chemical Complex
31/05/2013 14:32
Tashkent, Uzbekistan (UzDaily.com) -- Uz-Kor Gas Chemical, an Uzbek-Korean joint venture, and a consortium of creditors signed a package of loan and project agreements to finance and implement integrated gas mining and petrochemical project “Construction of Ustyurt gas chemical complex on the base of Surgil field”.
Mezon.uz reported quoting Uzbekneftegaz that the project will allow to launch capacities on production of 4.5 billion cubic meters of natural gas, 400,000 tonnes of high density polythelene, 100,000 tonnes of polypropyelen, 110,000 tonnes of pyrolized petroleum by 2016. It will create over 1,000 new jobs as well.
Last year, financial deal of Ustyurt Gas Chemical Complex was named as international deal of the year. The project cost is over US$4 billion. The project is financed due to own resources of founders – Kogas, Honam, STX Energy (all of them from South Korea) and Uzbekistan’s national holding company Uzbekneftegaz – for US$1.4 billion and loans for US$2.54 billion. The loans were attracted on project financing principles with limited regress right. Loans will be repaired within 16 years.
The Asian Development Bank, Korea Development Bank, China Development Bank participated in organization of loan financing within the project. Leading Asian and European commercial banks such as Korea Financial Corporation, ING (the Netherlands), KfW, Bayern LB, Credit Swiss, Nordea and SEK, export credit agencies of Korea, Germany and Switzerland (they provided insurance coverage to banks) are participating in the project. The project is supported by the Governments of Uzbekistan and South Korea.
ING served as exclusive financial advisor of the project, Vinson & Elkins was advisor on legal issues, while Norton Rose was legal consultant of creditors.
Main resource base of the project is gas and gcondensate, 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.
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