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Uzbekistan plans to draw China’s loan to build two booster compressor stations

Oil&Gas Materials 8 April 2014 17:36 (UTC +04:00)

Tashkent, Uzbekistan, April 8
By Demir Azizov - Trend:

The Uzbek government plans to draw a loan from the China Development Bank to the amount of $ 35 million to construct two booster compressor stations in Kashkadarya region (south of Uzbekistan), a source in the government circles told Trend on April 7.

It was reported that the Uzbekneftegaz National Holding Company has been implementing a project for the booster compressor station construction with a total capacity of nine billion cubic meters of gas per year since 2012.

The construction is carried out as part of the project for developing Alan and Shurtan gas fields with a total value of $364.3 million.

It is planned to construct three booster compressor stations by late 2014, including a booster compressor station - 2 on the Shurtan field with a capacity of 40 million cubic meters of gas per day, Northern Nishan booster compressor station with a capacity of six million cubic meters of gas per day, which is designed to maintain gas production at the field at the annual level of two billion cubic meters of gas by late 2020.

The third tender was announced for production, supply of equipment and engineering of the North Shurtan booster compressor station and Shurtan with a starting price of $79.78 million.

The booster compressor stations are designed to support gas production at the fields.

The negotiation process between the government and the China Development Bank is expected to be completed in late April - early May. The loan agreement will be signed in the first half of the year, according to the statement.

Besides the China Development Bank's loan, the projects are financed through Uzbekneftegaz's funds and the loans of the Uzbek Reconstruction and Development Fund.

Alan and Shurtan fields have been used since the second half of 1970s. Their stocks were not disclosed. Uzbekneftegaz's capacity ensures natural gas production to the amount of 70 billion cubic meters and liquid hydrocarbons to the amount of eight million tons per year.

translated by NH

edited by CN

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