Uzbek-Chinese joint venture to be established

Uzbekistan Materials 15 November 2011 17:00 (UTC +04:00)

Uzbekistan, Tashkent, Nov. 15 / Trend , D.Azizov /

Uzbekistan plans to establish liquefied natural gas (LNG) production worth $250 million in cooperation with the Chinese Xinjiang Guanghi Industry Investment Group in 2012, a government source told Trend on Tuesday.

The Uzbekneftegaz National Holding Company and the Chinese company signed a framework agreement establishing a joint venture in early November. The constituent documents to establish a joint venture on a parity basis will be signed in early 2012.

According to the preliminary feasibility study developed by Uzbekneftegaz, the joint venture is planned to produce liquefied natural gas in a volume of 600 million cubic meters a year. The bulk of production is planned to export, including to China. The production is planned to be launched in late 2015.

The project is planned to be financed through loans of Chinese banks and equity joint venture founders.