Uzbekneftegaz and Russian KBMP to create joint gas production

Oil&Gas Materials 13 January 2012 15:12 (UTC +04:00)

Uzbekistan, Tashkent, Jan 13 /Trend D.Azizov/

The National Holding Company (NHC) Uzbekneftegaz and JSC Kazan Motor-Building Production Association (KMBP, Russia) plan to establish a joint venture for the assembly production of gas pumping units (GPU) in the first half of 2012, a source in the government circles of Uzbekistan told Trend on Friday.

The source noted both parties signed a memorandum of cooperation, providing the implementation of the joint projects within the framework of local industry.

It is planned to create an assembly plant of GPU and components worth $50 million on the facilities at the Bukhara mechanical-repair factory, which is a division of the National Holding Company (NHC) Uzbekneftegaz, Trend reported previously.

According to a preliminary feasibility study, production capacity will reach 30 GPU and 1000 components per year.

The project will be financed through a $20 loan of the Fund for Reconstruction and Development of Uzbekistan, $20 million foreign investment and $10 million of NHC Uzbekneftegaz.

The production of GPU is included in the list of investment projects aimed to expand the production of competitive products on the basis of existing enterprises, approved by the President of Uzbekistan.
The purchase of GPU, drive motors and components occupy around 20 per cent of the total annual amount of equipment purchased for NHC Uzbekneftegaz. Ukrainian JSC Sumy Frunze SPA and JSC Turbogaz are the main suppliers of aggregates.
The total length of Uzbekistan gas pipelines is more than 14 thousand kilometres. Some powerful gas transmission systems such as the Central Asia - Centre and Bukhara-Ural, for the transit and export of natural gas are laid in north-western Uzbekistan.

Uztransgaz (a division of Uzbekneftegaz, which controls the transportation of natural gas in the country) operates 25 compressor plants and 246 GPU.

Facilities of NHC Uzbekneftegaz, exclusive for oil and gas operators in Uzbekistan, allow to provide natural gas production amounted to 70 billion cubic meters and liquid hydrocarbons in the amount of 8 million tones per year.

NHC Uzbekneftegaz provides more than 90 percent of hydrocarbons extraction in the country.
Production of liquid hydrocarbons in Uzbekistan decreased by 17.9 percent, up to 3.662 million tons, including gas condensate decrease by 22.5 percent, up to 1.644 million tons and oil decrease by 13, 5 percent to 2.018 million tones in 2010, compared to 2009.

Natural gas production is decreased by 2.1 percent, up to 60.112 billion cubic meters.

Production of liquid hydrocarbons, oil and gas condensate production decreased by 7.1 percent up to 2.742 million, including crude oil production decrease by 5.2 percent, to 1.443 million tones and gas condensate decrease by 9.2 percent, to 1.299 million tones tons in January-September 2011 compared to the same period in 2010. Natural gas production is decreased by 4.3 percent to 47.26 billion cubic meters.