Uzbekistan to attract Japanese JOGMEC to project for construction of synthetic fuel plant

Photo: Uzbekistan to attract Japanese JOGMEC to project for construction of synthetic fuel plant  / Economy news

Tashkent, Uzbekistan, March 6
By Demir Azizov- Trend:

Uzbekistan plans to invite the Japan Oil, Gas and Metals National Corporation (JOGMEC) to carry out a project for the production of synthetic fuel, (GTL process- gas to liquid) , in the Kashkadarya region (south of Uzbekistan), a source at Uzbekneftegaz National Holding Company (NHC) told Trend on March 5.

It was earlier reported that the cost of construction of a plant for production of GTL has increased from the earlier forecasted $4.1 billion to $5.6 billion, according to the Asian Development Bank (ADB).

Currently a negotiation process on the participation of the Japanese corporation in the project is underway, according to the source. The options for JOGMEC's participation in the construction of the plant through technological assistance, investing, or participation in share capital are being considered.

It is expected that a decision on this issue will be adopted by the summer of 2014.
Uzbekneftegaz National Holding Company (44.5 percent), South African Sasol Ltd. (44.5 percent), the Malaysian Petronas International Corporation Ltd. (11 percent) are participants of the project for construction of a GTL plant on the basis of the Shurtan Gas Chemical Combine.

The plant's construction will begin in autumn 2014 and be completed in the first quarter of 2018, compared to the previously planned date of construction completion in August 2017, ADB said.

Uzbekneftegaz began constructing the external infrastructure facilities of the plant in Kashkadarya in July 2012.

The project participants intend to approve a plan for its funding in May 2014.

It is planned that the plant will process 3.5 billion cubic meters of gas per year and annually produce 860,000 tons of diesel fuel, 360,000 tons of jet fuel, 390,000 tons of naphtha and 11,000 tons of liquefied gas. The raw material for fuel production will be the methane obtained from Shurtan to a volume of 3.5 billion cubic meters.

Korean Hyundai Engineering & Construction will be involved in the technological construction.

A contract worth $2.33 billion was signed with this company in December 2013.
The project will be financed through the equity of the founders of the joint venture, as well as a consortium of banks and financial institutions. Uzbekistan started forming a banking consortium to finance the GTL plant construction in September 2013.

Translated by L.Z.

Edited by S.M.

Follow us on Twitter @TRENDNewsAgency