Uzbekistan, Tashkent, April 30 / Trend, D.Azizov /
The Government of Uzbekistan and South Korean Korea Gas Corporation (Kogas) signed a direct agreement on the construction of the Ustyurt Gas Chemical Complex (GCC) in north-western Uzbekistan worth $3.9 billion. Construction of GCC is a major project to be implemented in the oil and gas sector of Uzbekistan, a representative of the Uzbek Government told Trend on Tuesday.
According to the source, the direct agreement envisages additional protection of creditors and investors interests in the project, as well as finally completing all the procedures of project financing. In particular, the structure and hedge stake are agreed in the agreement and terms of substitution of participants and compensation in case of abandonment have been settled.
As was previously reported, in 2008 the Uzbekneftegaz National Holding Company (NHC) and Korean consortium formed JV Uz-KorGasChemical for the construction of Ustyurt GCC worth $3.9 billion.
In the charter capital of KorGasChemical, 50 per cent is owned by Uzbekneftegaz and the other 50 per cent by the Korean consortium consisting of Korea Gas Corporation KOGAS, Honam Petrochemical and STX Energy.
In accordance with the feasibility study, GCC will annually process 4.5 billion cubic meters of natural gas and produce up to four billion cubic meters of marketable gas, 400,000 tons of polyethylene, 100,000 tons of polypropylene, and around 100,000 tons of pyrolysis gasoline.