S. Korean Venture Inks $2.5 Bn Uzbek Gas Deal
Saturday 19 May 2012
TASHKENT (AFP) – A South Korean joint venture in Uzbekistan said Saturday it had secured a $2.5 billion credit line to build a new chemical and gas production unit by 2016.
- Memorial Stone Laying Сeremony
On August 23rd, 2011 the JV Uz-Kor Gas Chemical LLC, NHC Uzbekneftegaz and Samsung Engineering, GS Engineering & Construction, Hyundai Engineering contracting companies have signed a contract for engineering, procurement and construction of Ustyurt Gas Chemical Complex (UGCC).
On August 24th the Stone Laying ceremony for the commencement of Ustyurt GCC construction has been held. The ceremony has been held in teleconference mode set between Uzexpocentre in Tashkent and the technological site in Akchalak settlement of Kungrad region of the Republic of Karakalpakstan. The opening of the Memorial stone has been carried out by Head of Jokargy Kenes of the Republic of Karakalpakstan Mr. Erniyazov M. and President of Korea Gas Corporation Mr. Choo Kang Soo.
In February 2008 within the framework of bilateral cooperation between the Republic of Uzbekistan and Republic of South Korea, the National Holding Company Uzbekneftegaz and the Consortium of Korean companies (KOGAS) on a parity basis have established the joint venture Uz-Kor Gas Chemical in form of Limited Liability Company.
The main purpose of JV Uz-Kor Gas Chemical is the construction of Ustyurt gas-chemical complex at Surgil field with field development. Thus, the task of specialists will include both gas processing and creation of conditions for its production and transportation. As such, during the construction of Ustyurt GCC, company shall produce gas and condensate from Surgil field and sell it to JSC Uztransgaz and JSC Uzneftmahsulot respectively.
The deal will help the venture launch construction of the Ustyurt plant. Uzbekistan Uzbekistan hopes to produce 4 billion m³ of gas per year – about a third of the country’s current annual export volume. It also hopes to manufacture about 500,000 tons per year of plastics as well as 100,000 tons of petrol which is derived as a bi-product in the process.
The whole project involves the development of three distinct yet interrelated components:
- Drilling of gas production wells and the construction and expansion of associated production infrastructure for the Surgil, North and East Berdakh Fields, including a Complex Gas Treatment Unit (CGTU) at the Surgil Field (the “Surgil CGTU”) and another CGTU shared between the North and East Berdakh Fields (the “East Berdakh CGTU”);
- The construction and operation of the UGCC and associated infrastructure (i.e. workers camp, rail connection, motor road connection, raw water supply line connection, sales gas pipeline, wastewater pipeline and disposal area and electrical power line connection, etc.) on the Ustyurt Plateau for the production of high-density polyethylene and polypropylene and export of sales gas; and
- Construction and operation of below ground gas and condensate pipelines to connect the Surgil Field to the new UGCC, tie in of the existing sales gas pipeline from East Berdakh CGTU to the Surgil gas pipeline and the construction and tie in of a new condensate pipeline linking the East and North Berdakh Gas Fields to the new Surgil condensate pipeline.
Uzbekistan’s First Deputy Prime Minister Rustam Azimov said the project highlights the nation’s desire to switch its focus from raw material exports to the production of commodities with added value. “Several similar projects are being prepared in Uzbekistan,” he said at the signing ceremony.