Uzbekistan, Tashkent, Feb 20/ Trend D. Azizov
President of Uzbekistan Islam Karimov has approved a scheme to finance the construction of the Ustyurt Gas Chemical Complex on the Surgil gas field project worth $4.03 billion, the department of Fuel and Energy Complex under Cabinet of Ministers told Trend on Monday.
According to the document, the project will be implemented and backed by the founders Uz-Kor GasChemical LLC which are the National Holding Company (NHC) and a consortium of various Korean companies, as well as loans from international financial institutions and the Fund for Reconstruction and Development of Uzbekistan (FRDU).
The Surgil gas field was opened two years ago and now is operated by Uzbekneftgas. According to unconfirmed reports, its reserves are about 120 billion cubic metres of natural gas.
In particular, Uzbekneftegaz is investing $705.43 million in the construction (17.5 per cent of the total project cost), including the property deposit. A consortium of investors will invest the same amount in the form of direct foreign investment.
In addition, Uz-Kor GasChemical will attract loans from international financial institutions, foreign commercial banks under guarantees and insurance coverage from the Asian Development Bank (ADB), Korea Eximbank (KEXIM), the Korean state-trading Insurance Corporation (KSURE) and other export -import agencies and international financial institutions on the basis of project funding of $2.520 billion (62.5 per cent of the total estimated cost of the project).
FRDU will provide Uzbekneftegaz with a loan of $100 million (2.5 per cent of the total estimated cost of the project).
As reported earlier, Uz-Kor GasChemical, ADB, KEXIM and KSURE completed the key terms of financing of the new complex on the Surgil gas deposit. The official launch ceremony at Ustyurt took place in August 2011.
Also in August 2011, the Korean Samsung Engineering, GS Engineering, Hyundai Engineering and Kogas signed four separate contracts with Uzbekneftegaz and Uz-Kor GasChemical for engineering, procurement and construction of Ustyurt GCC worth $2.6 billion.
Contracts for engineering, procurement and construction of Ustyurt GCC with GS Engineering & Construction, Samsung Engineering, Hyundai Engineering and the Korea Gas Corporation (KOGAS) were also signed.
In February 2008, Uzbekneftegaz and the South Korean consortium including KOGAS, Lotte Daesan Petrochemical Corp. (in 2009, it was replaced to Honam Petrochemical), LG International Corp., SK Gas and STX Energy created a joint new venture UzKorGasChemical to construct the Ustyurt GCC.
According to recent information the consortium has changed and today it includes KOGAS and Honam Petrochemical Corp, with a 45 per cent stake each and STX Energy that owns10 per cent.