Subscription

Central Government/Public SectorProject Information UZB: SURGIL NATURAL GAS CHEMICALS $ 40 Cr $ 400 Mn
06-May-2017
PID : 9386 Not Classified-Uzbekistan
Description

The project is located approximately 1,300 kilometers (km) from Tashkent in the Ustyurt region of Karakalpakstan, an autonomous republic in northwestern Uzbekistan. The integrated gas-to-chemical project consists of (i) upstream development and operations at the Surgil Field involving drilling new production wells and constructing upstream infrastructure including expanding the complex gas treatment unit to supply up to 3 billion cubic meters per annum (BCMA) of gas and 115 thousand tons per annum (KTPA) of condensate; (ii) downstream development and operations at the gas treatment site, located approximately 115 km southwest of the Surgil Field, involving constructing a new gas separation plant, an ethylene cracker, a high-density polyethylene plant, a polypropylene plant, and associated utilities and supporting facilities; and (iii) associated gas pipelines, product transportation, and water supply infrastructure; the project also includes three 35-megawatt gas turbine generator sets for power supply independent of the national grid.

The project will source gas from its own Surgil Field and will also purchase gas, through a gas supply agreement with UNG, from the East Berdakh and North Berdakh fields. Each of the fields is currently in production and the incremental production of the three gas fields available to the project provides the required gas volume. Condensate supply (another raw material required for the polymer process) is provided under long-term supply contracts.

The upstream and downstream components of the project will be connected by two parallel 115-km pipelines constructed to supply gas and condensate from the Surgil Field to the gas separation plant. The process technology will be supplied by each of the downstream engineering, procurement, and construction (EPC) contracts and will be fully aligned with technology license arrangements, providing the project with process performance guarantees and ongoing technical support from the process licensors.

Objectives and Scope The ADB assistance will finance, on a limited recourse basis, the engineering, procurement, and construction of gas wells, connecting pipeline, gas separation plant, ethylene cracker, polymer process plant, and associated utilities and offsite installations.
Linkage to Country/Regional Strategy The Uzbekistan Country Strategy and Program (CSP) 2001-2010 seeks to promote development in sectors where Uzbekistan has a comparative advantage, namely natural gas and manufacturing. Demonstration of the Investment Agreement structure supports the strategy objective of improving the business environment through improved financial norms and enabling investments for sustained GDP growth. The Project is aligned with the Strategy's focus on developing sectors where Uzbekistan has a comparative advantage in natural gas and manufacturing and leveraging that advantage for increasing the value-addition of exports and upgrading the practices and skills of its large scale manufacturing industry.
Status of Development Objectives The Project seeks to add incremental economic value to Uzbekistan's natural gas resources, enabling higher value products to be manufactured and exported. Demonstration effect of successful implementation of a pioneering investment framework will catalyze foreign direct investment in Uzbekistan's private sector large-scale manufacturing industry. ADB's presence as a direct lender provider will incubate scarce long-term cross-border commercial lending into Uzbekistan. Natural gas is a core economic resource for Uzbekistan and the project is a PPP of government and foreign investors.
Material Changes None

Subscribe our annual Project Alert Service and get access to all similar Projects.If you are registered member, please fill in the subscription form below . If not, please Register first.

(*) Mandatory fields
Select Plan Unit Rate Subscription Validity
Rs. 25000 /- 1 Year
Rs. 40000 /- 1 Year
Rs. 60000 /- 1 Year
Rs. 50000 /- 1 Year
Rs. 75000 /- 1 Year
Rs. 125000 /- 1 Year
* Service Tax As Applicable

Note : As Goods and Services Tax is set to be implemented from 1st July 2017. The transition provisions under GST law applies to all services provided by e-Procurement Technologies Ltd. to its clients on or after 1st July 2017 and GST tax rate and other taxes are applicable as extra for all services provided.

Top