President of Uzbekistan Islam Karimov paid a visit to Karakalpakstan on 25 April 2014 in relation to the ongoing construction works at the Ustyurt Gas Chemical Complex.
“The construction works underway since 2012 have been in progress with accelerated rates. Modern infrastructure facilities are being erected and high-tech hardware and equipment is being installed. Some 6,400 people have been working at the construction site of the complex. More than 3,500 of them are specialists of our country, the majority of them constitutes the younger generation,” the press service of the Uzbek President noted.
The project on construction of Ustyurt Gas Chemical Complex envisages constriction of the Surgil gas field, construction of plants for the separation of natural gas, cracking and production of the ready product.
Ustyurt Gas Chemical Complex will ensure processing of 4.5 billion cubic meters of gas and produce 3.7 billion tank gas, 387,000 polyethylene and 83,000 tonnes of polypropylene, as well as 102,000 tonnes of pyrolyise petroleum and other products.
The project is designed to serve the gas fields of Surgil and East Berdah. The largest, Surgil, went on-stream two years ago and is currently being expanded by Uzbekneftegaz. Government estimates put its size at some 120 bcm.
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.
Uzbekneftegaz owns 50% stake in the joint venture, while Uz-Kor Gas Chemical Investment holds 50% share. Korea Gas Corporation (KOGAS), Honam Petrochemical and STX Energy are Korean founders of the venture.
The project participants will invest US$1.4 billion and raise an additional US$2.5 billion in loans ect. from financial institutions to implement the project.
Asian Development Bank, leading European and Asian commercial banks like Korean Financial Corporation, Korean Development Bank, ING Bank, Siemens Bank, Credit Suisse, Bayern LB, KfW IPEX, Nordea and Swedish bank SEK, as well as insurance companies are participating in the financing of the project.