Uzbekistan plans to attract Singaporean Indorama Group to build large chemical complex
Uzbekistan, Tashkent, Jan. 31 / Trend D.Azizov /
Uzbekistan is planning to construct gas-chemical complex at the base of Mubarek gas-processing plant unitary subsidiary enterprise by the end of 2015. The government included this project to list of new investment projects in industry, which are under development. In line with the document, the capacity of the complex will make up 400,000 tonnes of polyethylene a year.
The project with the cost of $1.2 billion will be implemented in cooperation with Indorama group (Singapore). It is planned that Indorama will invest $600 million to the project and Uzbekneftegaz national holding company will direct $150 million. Fund for Reconstruction and Development of Uzbekistan will allocate loan for $450 to implement it.
Mubarek gas-processing plant is unitary subsidiary enterprise of Uzneftegazdobicha and it is one of the largest gas processing plants in the world. It has been commissioned in 1971 and can process up to 30 billion cubic meters of gas.
The enterprise produces several types of products, including stable gas condensate, compressed hydrocarbon gases, technical gas sulfur. The products are realized in internal and external markets.
In 2001, Uzbekistan has put into operation Shurtansky gas-processing plant worth $985 million based on deposit Shurtan. The design capacity of the complex can process 3.9 billion cubic meters of gas and produce 125,000 tons of polyethylene, 137,000 tons of liquefied natural gas and 130 thousand tons of unstable condensate per year.
In February 2010, the Uzbek government and the consortium of Korean companies led by Kogas signed an investment agreement on construction of Ustyurt gas-processing plant on the field Surgil (Ustyurt region) worth $3.5 billion d. Enterprise with a production capacity of 400,000 tons of polyethylene and 100,000 tons of polypropylene per year is planned to enter service until 2015.
Indorama and National Bank for Foreign Economic Activity of Uzbekistan created joint venture Indorama Kokand Textail with the charter capital of $20 million. The share of Singaporean side is 76% and NBU - 24%. After commission in 2013, Qoqand Textile Combine will process about 16,000-20,000 tonnes of cotton-yarn a year.
The statutory fund will be established within three years. Singapore-based company committed to invest over four years in the development of production of at least $ 55 million, of which 15 million - company's own funds, $ 40 million - loans of foreign banks, attracted by the principles of project funding. The enterprise is scheduled to be opened in 2013.
The Uzbek-Singapore joint venture "Indorama Kokand Textile" for five years is exempted from payment of customs duties for imported production equipment, tooling, spare parts, components and construction materials. According to the government decision, the released funds should be used in the construction of textile enterprises.