South Korea's Eximbank ready to finance construction of GTL-plant in Uzbekistan
Tashkent, Uzbekistan, Aug.12
By Demir Azizov- Trend:
South Korea's "Eximbank" can join the international banking consortium to finance the construction of plant for the production of synthetic fuel in Kashkadarya region (south of Uzbekistan) by end of the year, a source in government circles of Uzbekistan told Trend.
A preliminary agreement on joining of the South Korean bank in the consortium was reached during a June visit of South Korean President Park Geun Hye to Uzbekistan, according to the source.
The formation of the consortium is planned to be completed in the fourth quarter of 2014.
As reported earlier, Uzbekneftegaz, South African Sasol Synfuels International (Pty) Ltd. and Malaysia's Petronas International Corporation Ltd. (Petronas) signed founding documents in November 2009 on the establishment "Uzbekistan GTL" joint venture for the production of synthetic liquid fuels at the base of Shurtan MCC (Kashkadarya).
The joint venture was established on a parity basis with the preliminary authorized capital in the amount of $30 million.
In 2011, the share of Malaysian companies in the joint venture, on the proposal of "Petronas", was reduced to 11 percent, and the share of Sasol and "Uzbekneftegaz" - increased by 44.5 percent.
In 2013, "Sasol" also announced its intention to reduce its share from 44.5 to 25.5 percent in the joint venture due to increased portfolio and significant investment in its projects in South Africa.
At present moment, the project cost is estimated at $5.6 billion. The financing of plant`s construction will be implemented through the own funds of the joint venture founders (30 percent of the cost), as well as loans from a consortium of banks under the conditions of project financing (70 percent of the cost).
It is planned that the plant will process 3.5 billion cubic meters of gas and produce 863,000 tons of diesel fuel, 304, 000 tons of jet fuel, 395, 000 tons of naphtha and 11, 200 tons of liquefied natural gas per year.
The licensor of the synthetic liquid fuels production technology (Sasol SPDTM process) is "Sasol Technology (Pty) Ltd" within the project.
The "turnkey" construction of the technologial part of the plant will be implemented by the South Korean "Hyundai Engineering & Construction". At present, the Uzbek side builds the infrastructure of the main facility.
The raw material for fuel production will be the methane coming from Shurtan gas chemical complex in the amount of 3.5 billion cubic meters.
Shurtan was commissioned in 2001. The technology of the complex is designed to produce 150 kinds of polyethylene of high, medium and low pressure line.
Edited by CN