BAKU, Azerbaijan, June 4
By Klavdiya Romakayeva - Trend:
Uzbekistan and Russia signed a Memorandum of Understanding (MOU) for the financing of the new greenfield gas chemical complex based on Methanol-to-Olefins (MTO) technology to be built in the Bukhara region of Uzbekistan, Trend reports referring to the Jizzakh Petroleum JV LLC
It is reported that a four-sided MOU was signed between Uzbek Jizzakh Petroleum JV LLC, Russia’s Gazprombank JSC, State Development Corporation VEB.RF and the Russian Agency for Export Credit and Investment Insurance (EXIAR).
It is noted that the MOU establishes a framework for potential future cooperation between the parties with respect to the financing of the project and the insurance of the risk related to the facility in the amount of $800 million preliminarily.
Director for Strategic Development Jizzakh Petroleum Nigora Ibadova said the project will become the core of the future gas chemical cluster, which will be assigned the status of a special economic zone, the first of its kind in Central Asia.
Also, she noted the importance of ongoing support and cooperation with financial institutions such as Gazprombank JSC, VEB.RF and EXIAR, particularly because of the company’s plan to bring in a significant amount of equipment, materials and services for the project from Russia.
When completed, the state of the art 720,000 tons per year complex is expected to process 1.5 billion cubic meters of natural gas annually and produce high-quality polymers used in many sectors of the world economy.
The joint venture Jizzakh Petroleum LLC was created to accelerate the development of Uzbekistan's energy sector. Jizzakh Petroleum transferred the rights to operate 104 oil fields in Uzbekistan. The company has a track record of successfully collaborating with international companies such as Gazprom, Amec Foster Wheeler (Wood), Axens and others.
Jizzakh was named a major investor in the project late last year. The $2.8-billion gas chemical plant, one of the largest and most complex in the CIS region, is regarded as key to the future monetization of Uzbekistan natural gas through the production of export-oriented high-value-added gas-chemical products.
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