A new gas chemical complex to be built in Uzbekistan
04/06/2021 17:50
A new gas chemical complex to be built in Uzbekistan
04/06/2021 17:50
Tashkent, Uzbekistan (UzDaily.com) -- Uzbekistan plans to build a new gas chemical complex based on MTO technology (methanol to olefins). The plant will be built in Bukhara region.
On 4 June, Jizzakh Petroleum signed a four-way memorandum of understanding with Joint Stock Company Gazprombank, State Development Corporation VEB.RF and the Russian Agency for Export Credit and Investment Insurance (EXIAR) to finance a new gas chemical complex based on MTO technology.
The document lays the groundwork for possible future cooperation in terms of financing the project in the amount of tentatively US$800 million, and related insurance of the risks associated with the financing.
Jizzakh Petroleum is an investor in the project. The gas chemical complex, with a construction cost of US$2.8 billion, is unmatched in the CIS. The plant will operate on domestic raw materials, which will make it possible to monetize natural gas through the production of export-oriented gas chemical products with high added value.
Strategic Development Director of Jizzakh Petroleum LLC JV Ibadova N.R. said:
“The MTO project, on which our team has been working for about 2 years, is an illustrative example of modern Uzbekistan, where great attention is paid to projects to create chains of finished products with high added value. In turn, this gives a positive impetus for the development of future related industries, import substitution and the organization of new jobs. The project will become the core of the future gas chemical cluster, which will be assigned the status of a special economic zone, and this will be the first such experience in Central Asia. It should be noted the importance of cooperation with such financial institutions as GPB, VEB.RF and EXIAR, since a significant amount of equipment, materials and services within the project is planned to be attracted from Russia. The signing of this memorandum is a significant step towards the successful implementation of the project.”
The signing ceremony took place within the framework of the 24th St. Petersburg International Economic Forum, which over the past years has become the world’s leading platform for communication between business representatives and discussion of key economic issues facing Russia, emerging markets and the world as a whole.
Upon completion of construction, the new state-of-the-art olefin plant is expected to process 1.5 billion cubic meters. meters of natural gas and produce 720,000 tonnes of high-quality polymers per year, used in many sectors of the world economy.
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