Japan's Toyo awarded $8 mln contract in Turkmenistan
Ashgabat, Turkmenistan, May 13
By Huseyn Hasanov- Trend:
Japanese Toyo Engineering Corporation garnered a contract in Turkmenistan for the construction of a large gas chemical complex.
The Toyo Engineering Corporation signed a contract with the State Concern "Turkmengaz" together with the South Korean consortium of Hyundai Engineering Co., Ltd., Hyundai Engineering & Construction Co., Ltd. and LG International Corporation, the company reported.
The total amount of the deal is $3 billion. The contract with the Japanese company is estimated at $800 million.
This is the first project of a Japanese company in Turkmenistan, and is scheduled for completion in 2018. The company`s report also said the complex will produce ethylene, high density polyethylene and polypropylene from natural gas produced on the coast of the Caspian Sea.
The production of the future enterprise is designated for exports to the EU and Asia.
On April 22, 2014 the ceremony of laying the industrial complex for polyethylene and polypropylene production worth more than $3 billion was held in the Caspian settlement of Kiyanly, Balkan region, Turkmenistan.
The production capacity of the complex will hit 386,000 tons of polyethylene and 81,000 tons of polypropylene per year.
Turkmen President Gurbanguly Berdimuhamedov stressed that the construction of this complex is stipulated by huge natural gas reserves and plans on diversifying the country's export potential.
It was reported in November 2013 that several industrial facilities worth $10 billion would be built in Turkmenistan in the future using Japanese capital. The list includes the project for the gas chemical complex in Kiyanly.
The Turkmen State Bank for Foreign Economic Affairs and the Japanese Bank for International Cooperation (JBIC) signed a cooperation agreement to implement a large-scale project in September 2013.
Turkmenistan holds one of the key positions in the region for the supply of natural gas. China, Russia and Iran are importers.
Recently, the Turkmen leadership chose a course for economic diversification. They are developing oil and gas processing, textile, cotton processing and the building material industries.
Edited by C.N.