Tashkent, Uzbekistan (UzDaily.com) -- Currently, designing of the facility on production of propane-butane mixture is under development at the State Institute Uztyajneftegazhimproject (Uzbek Heavy Oil and Gas Chemical Project). The institute said the project is aimed at increasing production of liquefied gas at Mubarek Gas Processing Plant for satisfaction of internal demand of industrial enterprises and habitations in Uzbekistan.

The project envisages building of booster station for processing natural gas, establishing zeolitic gas drying (to eliminate moisture) and facility on production of propane-butane mixture. The facility will allow to extract propane-butane fraction with supply of dried tank gas to pipelines of Uztransgaz joint stock company.

The project implementation will allow the enterprise to produce up to 258,000 tonnes liquefied gas and 125,000 tonnes of gas condensate a year. Over 80% of products will be exported. In line with the feasibility study, the zeolitic drying facility will comprise of three technologic lines with capacity of 4 billion cubic meters of gas a year each.

The facility on production of propane-butane mixture also comprises of three technologic lines. Used technology is effective for achievement of necessary project parameters. The project envisages use of reliable technologic schemes on gas processing and equipment, analogues to those used at Kokdumalak oil and gas condensate deposit and Shurtan gas condensate deposit. According to the specialists of Uztyajneftegazhimproject, the equipment met the most modern requirements of production.

High reliable and approved system of automatic management will be used for control and management of technological processes. Besides, technology ensures minimal impact to environment and satisfies all established ecological norms. In line with the developed project, Mubarak Gas Processing Plant will annually process up to 12 billion cubic meters of natural gas.

The construction of the system on propane-butane fraction is planned at the existing capacities of the Mubarek Gas Processing Plant within the industrial and economic cooperation. The existing enterprise and technologic system allows to supply natural gas in the set volume for its processing.

Total cost of the project is US$244 million. Its financing will be carried out due to resources of Uzbekneftegaz national holding company with attractions of loans of the Fund for Reconstruction and Development of Uzbekistan, National Bank for Foreign Economic Activity of Uzbekistan and China Development Bank. The scheme on realization of products was also determined. It is planned about 30% of propane-butane mixture (liquefied gas) will be realized in internal market and 70% will be exported. All volume of stable gas condensate will be directed to internal market on long-term contract.

Internal norm for project profitability within international IRR scheme makes up 12.8%. The project payback is eight years from the start of construction. The project implementation will allow to ensure high quality of natural gas, supplied to gas pipelines in line with the requirements of international standards and State Standards of Uzbekistan.

In year 2010, Uzbekneftegaz announced about project implementation on increasing production of liquefied gas at Shurtanneftegaz. In line with the feasibility study, the project envisages construction of the fifth and the sixth facility on preparation of propane-butane mixture at this enterprise. The capacity of the facility on processing of gas will make up about 6 billion cubic meters of natural gas, which will allow to manufacture about 100,000 tonnes of liquefied gas a year. Total project cost is US$97.5 million. The finance forecast for 2010 is about US$11 million. In particular, the own resources of the enterprise is US$1 million, funds of Fund for Reconstruction and Development of Uzbekistan US$10 million. The construction of the facility will start in the first half of 2010.

Both projects, directed at increasing production of liquefied gas in the country, were included into the Investment programme of Uzbekistan for 2010, approved by the Uzbek President Islam Karimov in October 2009.

According to the Uzbek State Statistics Committee, the production of liquefied gas in Uzbekistan made up 246,100 tonnes (down 0.7% year-on-year). The country produced 237,600 tonnes of liquefied gas in 2007, which is up 6.5% year-on-year (223,100 tonnes). Implementation of the projects will help Uzbekistan to raise liquefied gas production to 615,000 tonnes by 2011. It is expected that total investment volume on these projects will comprise US$320 million.