UzAFI – State Investment Committee of the Republic of Uzbekistan

02/10/2021 | Press release | Distributed by Public on 02/10/2021 15:19

Within the framework of the MTO Jizzakh Petroleum project, six agreements are signed

Jizzakh Petroleum, an oil and gas company, which focused on the development of the energy sector in Uzbekistan, announces significant progress in the construction of a new gas chemical complex in Uzbekistan based on the technological process of converting methanol to olefins (MTO).

Jizzakh Petroleum is a major investor in the project located in the Bukhara region of Uzbekistan, which will use local raw materials to monetize natural gas via the production of high value-added and export-oriented products that are in demand within the country. The creation of the future Gas Chemical Complex will lead to the internal development of the textile industry, as well as import substitution and an increase in production in the automotive and construction industries.

'The Government of Uzbekistan welcomes the progress that has been achieved in relation to this Bukhara complex. We consider this project as a model for future interaction between Uzbekistan and international partners, - said Energy Minister Alisher Sultanov. This partnership is the key to the accelerated development program, which is being implemented by the government of our country and, in particular, the Ministry of Energy. Having completed site selection just last year, we are delighted that discussions with Jizzakh Petroleum have so quickly led to this series of agreements with major international licensors. '

Based on in-depth researches and evaluations conducted with partner Wood in early February 2021, six licensing agreements has been signed with leading international companies.

Company

Technology

Chemtex (Invista)

(USA)

PET

Scientific design

(USA)

MEG

Versalis

(Italy)

LDPE/EVA

Haldor Topsoe

(Denmark)

Methanol

Grace

(USA)

PP

Sinopec

(China)

MTO

These milestones follow September 2020 announcement on site selection and completion of marketing and feasibility studies by consulting and technical partners - IHS Markit, Nexant and Wood.

Other milestones include:

  • Jizzakh Petroleum has engaged White & Case as the project's legal advisor and Mott MacDonald as Environmental and Social Impact Assessment consultant;
  • An agreement has been signed with Wood on FEED
  • Formal letters of intent have been received from SACE (ECA of Italy) and Bank Intesa Sanpaolo (Italy) for financing FEED;
  • Negotiations have taken place with Marco Polo International (USA) and KTM Kimyevi Maddeler (Turkey) for the offtake of polymer products.

http://minenergy.uz/