Uzbekistan establishes JV producing LPG equipment
Uzbekistan, Tashkent, May 19 / Trend D. Azizov /
Uzbekistan has created two joint ventures with Korean companies. They will specialize in LPG equipment production for vehicles and construction of liquefied natural gas (LNG) stations, Uzbekneftegaz said.
"KO UNG Cylinder" JV producing LPG equipment was established by Avtogaztaminot's subsidiary, Uzbekchimmash (included in Uzbekneftegaz) and Korean Kogas, Kolon and NK.
"KOR UNG Investment" JV was established by Uzbek Avtogaztaminot and Korean Kogas, Kolon, Kwangshin and Engine Tech. The joint venture was formed to construct and exploit 50 filling stations in Uzbekistan.
The opening ceremony of the two joint ventures was held last week.
The project for LPG equipment production was included in the Republican investment program for 2011. According to the program, the estimated cost of the production capacity is $20 million. The project implementation term is 2011-2012.
Avtogaztaminot specializes in compressed natural gas supplies for filling stations. Uzbekhimmash is the enterprise specializing in designing, manufacturing and servicing equipment for the petrochemical industry.
In early 2007, the Uzbek government adopted a program of gradual transferring the road transport in Uzbekistan for gas fuel for the period until 2012.
In particular, it is planned to build 138 filling stations with a reservoir of 708 million cubic meters of compression gas and 952 gas stations with a total capacity of 476,000 tons of liquefied gas throughout the country.
At present, about 10 percent of the total number of vehicles, registered in the country, operates on gas.
Uzbekneftegaz is a monopoly operator of the Uzbek oil and gas industry. It was established in 1998. It comprises six joint-stock companies.
Uzbekistan ranks second among CIS countries on natural gas production. It is among the ten largest gas producing countries in the world.
The natural gas production in Uzbekistan decreased by 2.1 percent - up to 60.112 billion cubic meters in 2010, the production of liquefied hydrocarbon gases decreased by 0.2 percent - up to 245,700 tons.