Monday, January 12, 2015

Ustyurt Gas Chemical Complex - Update

The Uz-Kor Gas Chemical JV will complete construction of the est. $4.1 billion Ustyurt Gas Chemical Complex in 2015 allowing Uzbekistan to significantly expand its gas production. Currently Uzbekistan has around 10bcm/yr available for export.

Work on the plant began in 2011. It is scheduled to process some 4.5 billion cubic metres per year of gas and produce up to 4 bcm/y of commercial gas, as well as 387,000 tons per year of polyethylene, 83,000 tpa of polypropylene and about 102,000 tpa of pyrolysis gas.

The complex is being developed by Uz - Kor Gas Chemical JV which is a joint venture between the national gas company Uzbekneftegaz and a Korean consortium (consisting of Kogas, Honam Petrochemical and STX Energy). Funding of the construction of the complex is on a joint basis assisted by $2.54 billion in Asian, European and Uzbek bank loans.

The Surgil, Vostochny Berdakh-Uchsay and Severny Berdakh fields will serve as the resource base for the complex. The largest of them – Surgil – contains about 120 bcm of gas.

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, and other related infrastructure) 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.


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