US, Uzbekistan to launch JV for production of industrial gas

Oil&Gas Materials 14 March 2019 16:47 (UTC +04:00)

Baku, Azerbaijan, March 14,

By Fakhri Vakilov-Trend:

The US company Air Products and Uzbekneftegaz have signed an agreement on a joint venture for the production of industrial gases worth up to $450 million, Trend reports with reference to press service of Uzbek Ministry of Energy.

The parties also signed a memorandum of understanding to explore the possibility of organizing the production of helium from natural gas in Uzbekistan.

The Ministry of Energy added that the Air Products delegation held talks with the Ministry of Investments and Foreign Trade and Uzkhimprom JSC, where they discussed issues of participation in the organization of ammonia and carbamide production in the Syrdarya region.

In October 2018, Air Products and Uzbekneftegaz signed an agreement on the implementation of promising projects in the field of deep gas processing worth $2 billion. The holding stated that in the medium term, the country plans to build a new gas chemical cluster with a preliminary cost of $4.25 billion based on a public-private partnership.

The cluster will include a gas chemical complex using MTO technology (methanol to olefins), as well as about ten polymer processing plants with production of up to 300,000 tons of finished products. A gas chemical complex will process up to 1.5 billion cubic meters of gas and produce 200,000-250,000 tons of polypropylene, 100,000 tons of ethylene-propylene rubber, 100,000 tons of polyethylene terephthalate and ethylene vinyl acetate, 100,000-150,000 tons of ethylene glycol and polyethylene.

Follow author on Twitter:@vakilovfaxri