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10 oil, gas and petrochemical investment opportunities in Uzbekistan: 2016 and beyond

Uzbekistan is one country that looks to be escaping the spending squeeze on exploration and investment being felt around the world. From 2015 to 2019 and on into the following decade, $17 billion will be spent on investment projects in oil and gas, petrochemicals and other primary industries, according to government documentation – with state company Uzbekneftegaz responsible for over $7 billion of this total. The list is long and detailed, so we have picked a top ten:



Project: Construction of the fourth leg of the Uzbekistan-China natural gas pipeline

Value: $800 million

Timeframe: 2015-2017

Details: A fresh injection of investment from the China Development Bank will pay for the fourth and final leg of the Central Asia-China gas pipeline. Construction on the pipeline began in 2007, and once it is finished it will reach an annual deliverability of 85 billion cubic metres – making it the largest gas transportation system in Asia.



Project: Construction of a gas processing plant at the Kandym field group deposits under the PSA against Kandym group deposits, Khauzak, Shady, and the Kungrad areas

Value: $2.66 billion

Timeframe: 2015-2019

Details: Entirely funded by Lukoil, this project involves construction of a gas processing plant fed by deposits at the Kandym, Khauzak, Shady and Kungrad fields. Once completed in 2019, this project will add an annual production and processing capacity of 8.1 billion cubic metres of natural gas.



Project: Enhancement of the capacity of Zavod Uzbekhimash JSC for large petrochemical equipment

Value: $25 million

Timeframe: 2016-2019

Details: Zavod Uzbekhimash, which makes equipment, machinery and large machine tools for the petrochemical and a range of other industries, will receive a major upgrade of its petrochemical equipment manufacturing capacity. Once the work is completed in 2019, it will add 12 large-scale pieces of machinery per year to the plant’s production output.



Project: Enhancing the production capacity of the Shurtan Gas Chemical Complex

Value: $570 million

Timeframe: 2016-2019

Details: The Shurtan Gas Chemical Complex in southern Uzbekistan already processes 3.9bcm of gas each year, and this will be extended further with a $570 million project to enhance capacity. Engineering firm iRED is meeting $285 million of the upgrade cost. A pre-feasibility study on the enhancement project to determine the extra annual capacity will take place in 2016.




Project: Construction of a new plant for hydrocarbons pyrolysis for Uz-Kor Gas Chemical JV

Value: $300 million

Timeframe: 2017-2019

Details: Uz-Kor Gas Chemical JV, a major new petrochemical plant in Uzbekistan, will receive a new plant for hydrocarbon pyrolysis. Construction is scheduled to finish in 2019, with $300 million spent on the project - $120 million from the Fund for Reconstruction and Development of Uzbekistan, $90 million of commercial bank loans, and $90 million from Uz-Kor’s existing cash reserves. Once upgraded, the new plant will produce 30,000 tons of benzene, 20,000 tons of toluene and 5,000 tons of xylene annually.



Project: Construction of a gas chemical complex at the Mubarek Gas Processing Plant Unitary Subsidiary

Value: $2.5 billion

Timeframe: 2015-2019

Details: Annual production capacity for this petrochemical facility to the north-west of Bukhara will be 492,000 tons of polyethylene, 66,000 tons of gas condensate, and 53,000 tons of pyrogasoline.                                                                                                            



Project: Production and conversion of shale oil to petrochemical products at the Sangruntau deposit

Value: $600 million

Timeframe: 2015-2020

Details: Located in the Navoi Region of north/central Uzbekistan. 4 million tons of shale oil will be processed as part of the project, which also includes production of an extra 250,000 tons of shale. Half of the $600 million cost will be met with foreign investment and credits.



Project: Modernisation of the Bukhara Oil Refinery

Value: $348 million

Timeframe: 2019-2021

Details: Modernisation of the Bukhara oil refinery will begin in 2019, part-funded with international capital, to bring its production capacity to 2.5 million tons per year.



Project: Redevelopment of the Hojisayat area of the Dengizkul condensed gas deposit

Value: $277 million

Timeframe: 2015-2019

Details: Fully funded by CNPC, this project will bring 1bcm of hydrocarbons on stream. The project also includes development of two further condensed gas deposits - Hojidavlat and Eastern Alat.



Project: Exploration at the Khorezm and Meshekli Tuzkoy investment units

Value: $200 million

Timeframe: 2015-2018

Details: 2D and 3D seismic surveys and drilling of an exploration well, entirely funded by foreign capital.

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