Uzbekneftegaz, Alcatel-Lucent Shanghai Bell Co. continue negotiations on project to install SCADA

Uzbekistan, Tashkent, May 15 / Trend, D. Azizov /

National Holding Company Uzbekneftegaz and Alcatel-Lucent Shanghai Bell Co. continue negotiations on the project of installation of Supervisory Control and Data Acquisition (SCADA) on gas transportation system of JSC "Uztransgaz", Uzbekneftegaz board chairman Shakir Fayzullayev told reporters on Monday.

"At present, the Uzbek side has certain disagreement with the Chinese partner - Alcatel-Lucent, which implements the project," Fayzullayev said.

He said at present through working groups Uzbek and Chinese sides are working to resolve the situation and the elimination of existing differences.

"Unfortunately, this is quite a long process. We would like to move quickly, as this project is very important for gas transportation system of Uzbekistan. At present, we have not yet reached a consensus and we continue to work. So, it is early to say something on terms of the project," Fayzullayev said.

He did not disclose reasons for disagreement over the contract with the Chinese partner.
The Chinese Alcatel-Lucent Shanghai Bell Co. and Uztransgaz (a structural unit of Uzbekneftegaz) signed the agreement in mid-2010.

Under the contract, Alcatel-Lucent Shanghai Bell Co. will undertake the design, equipment supply, conduct of construction and installation work, starting-up and turnkey commissioning of facilities of gas transportation system worth $77.47 million.

The project will be implemented in several stages over 18 months.

The total cost of the project is $81 million. The project will be funded via Uztransgaz in the amount of $7.4 million and Chinese Eximbank's loan worth $73.6 million.

The loan of the Chinese Eximbank was granted to Uzbekistan under state guarantee in 2010.

So far, only design and equipment supply have been carried out under the project.
As it was reported earlier, Uzbekneftegaz suspended term of contract with Alcatel-Lucent Shanghai Bell Co. to introduce the SCADA system at gas transportation system in Uzbekistan.

SCADA project is included in the republican investment program of Uzbekistan for 2012. Under this program, the project should be implemented by late 2012.

Uzbekistan ranks third among the CIS countries for extraction of natural gas. Every year the country produces more than 50 billion cubic meters of natural gas.

The Uztransgaz system has 13,274 km of gas mains, 24 gas compressors and 310 gas distribution stations, as well as 3 underground gas storage facilities with total capacity of 4.5 billion cubic meters.

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