Turkmenistan to receive large loan on construction of gas chemical complex
Ashgabat, Turkmenistan, May 31
By Huseyn Hasanov - Trend:
Turkmenistan will receive a big loan for construction of a gas chemical complex in the country's Balkan district.
State Bank for Foreign Economic Affairs of Turkmenistan signed agreements with Japan Bank for International Cooperation and Export-Import Bank of Korea to finance the construction, a source close to the negotiations, told Trend on May 31.
The amount of loan is reportedly $2,5 billion.
Earlier, the Japanese Toyo Engineering Corporation (TOYO) reported that the $3-billion contract with state consortium "Turkmengaz" in tandem with the South Korean Hyundai Engineering Co., Ltd., Hyundai Engineering & Construction Co., Ltd. and LG International Corporation was signed. The remaining costs are to be handled by the Turkmen state gas concern.
The complex will produce ethylene, high density polyethylene and polyethylene from natural gas produced on the coast of Caspian Sea. The production of the complex is oriented for export to the EU and Asian countries.
While Turkmenistan holds one of the key regional positions on gas supply, the country's leadership took a course for diversification of economy.
In recent years, the oil and gas industry, as well as textile and cotton industry, production of construction materials, are developing.