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Uzbekistan thinks to process its gas domestically, in long-term

Oil&Gas Materials 6 May 2020 14:17 (UTC +04:00)
Uzbekistan thinks to process its gas domestically, in long-term

BAKU, Azerbaijan, May 6

By Ilkin Seyfaddini – Trend:

Uzbekistan is planning to reduce gas exports to almost zero over the next decade, shifting its focus to processing gas domestically, Uzbekneftegaz CEO Mekhriddin Abdullaev told to S&P Global Platts, Trend reports.

As part of these plans, Uzbekneftegaz is investing in two major downstream gas projects -- the Oltin Yo'l gas to liquids project in Southern Uzbekistan, and expansion of the Shurtan gas chemical complex.

Oltin Yo'l plant has a planned processing capacity of 3.6 billion cubic meters of natural gas a year and is slated for completion later this year. An estimated investment of $3.6 billion, the project includes Chinese, Russian and Japanese investors.

"In addition, feasibility studies are being carried out at two potential plants: one based on methanol olefin technology and the other based on ammonia and urea production," Uzbekneftegaz CEO Mekhriddin Abdullaev told Platts.

Uzbekistan produced around 60 billion cubic meters of gas last year and is planning to ramp up production by 20 percent by 2030.

"The fulfillment of this goal depends on the results of major exploration work that we are carrying out together with foreign investors," Abdullaev said.

Increasing foreign investment in the oil and gas sector is part of a wide-ranging economic reform program introduced since President Shavkat Mirziyovev took office in 2016.

"Our main priority is exploration, which will give us a clearer picture of hydrocarbon reserves. We are working on several gas exploration deals with international oil companies, including European majors such as Total and Eni, and the alliance with BP and SOCAR" Abdullaev said.

He added that the company planned to sign further agreements with BP and SOCAR on exploration at a field in the Ustyurt region, close to the Aral Sea, in the near future. The companies previously signed preliminary agreements on joint exploration work in the area.

Uzbekneftegaz is a state-owned holding company and the largest state company in Uzbekistan. The company ranks 11th in the world's natural gas production.

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