Uzbekneftegaz national holding company, Petronas and Sasol Synfuels International (PTY) Limited are implementing project on construction of the plant on production of synthetic fuel on the base of Shortan Gas Chemical Plant in Kashkadarya region.
Uzbekneftegaz, Petronas and Sasol Synfuels International (PTY) Limited signed charter and constituent agreement of joint venture Uzbekistan GTL in November 2009. The project cost is US$4.1 billion.
The plant will process 3.5 billion cubic meters of gas and produce 863,000 tonnes of diesel fuel, 304,000 tonnes of aviation kerosene, 395,000 tonnes of naphtha and 11,200 tonnes of liquefied gas. Technip of France develops the feasibility study. The project will be implemented within five years.
The project will be financed due to own resources of the venture’s founders, consortium of banks and financial institutions, which issue loans on project financing terms.
The forum is attended by several international development institutes, multinational organization and export-credit agencies, which can participate in project financing of the plant.
The conference is a part of the first meeting, which was held in Malaysia in early 2013 after the project information memorandum was issued. During the conference, the participants familiarized with investment climate in Uzbekistan, social-economic development in the country and plans within the project.
First deputy Prime-Minister of the Republic of Uzbekistan - Minister of Finance Rustam Azimov said: “We invited you to discuss your possible participation in the project on production of synthetic fuel, which will receive trademark OLTIN YO’L GTL. The project is of a strategic importance for Uzbekistan, which considers creation of production of liquid synthetic furl as important task of ensuring energy security in the country.” He said that the Government of Uzbekistan and President of Uzbekistan Islam Karimov, personally, fully support the project and will create all necessary conditions for its success in all stages of implementation.
Rustam Azimov stated that the project OLTIN YO’L GTL is one of important elements of the programme on modernization of industry in Uzbekistan. Existence of reliable sources of high quality transport fuel will allow Uzbekistan to use its beneficial geographic location and expend all types of cargo transportation, he said. Minister underlined that Uzbekistan implements several projects on developing transport infrastructure, updating of fleet of airplanes and railway equipment, production of trucks.
The project on production of synthetic fuel also has important role for meeting demand of population of Uzbekistan in transport fuel, Azimov said.
Vice-President added that Uzbekistan believes in success of the project as the country possesses large reserves of gas. He said that proved gas reserves of Uzbekistan makes up 2 trillion cubic meters and forecasted gas reserves – 7 trillion cubic meters. He said that these figures grow each year.
Another factor for success of the project is growing demand of economy of Uzbekistan in fuel as share of industry, including automobile, railway and air transportation, is growing.
Rustam Azimov stated that the Government of Uzbekistan is ready to allocate over US$700 million of investment to project implementation and provide reliable support to investors and creditors.
Minister of Economy of Uzbekistan Ms Galina Saidov briefed the participants on social-economic development of Uzbekistan and projects, implemented in various areas of the economy. She said that Uzbekistan works on modernization of production capacities and introduction of saving technologies, as well as development of transport infrastructure.
She said that Uzbekistan develops four directions of transport communication – automobile, railway, aviation and pipe. Uzbekistan constructs national automobile highway, which will improve conditions for transportation services.
Development of automobile transportation will increase demand for petroleum and diesel fuel, and the project will serve to meet this demand, the Uzbek official said.
Speaking about aviation sector, Saidova said that Uzbekistan fully updated its airplanes fleet and it uses modern Boeing and Airbus airplanes. She added that the country modernized airports and ready to receive international airplanes. Uzbekistan becomes an international transit hub, she noted. Ministry, at the same time, said that demand for aviation kerosene exceeds the offer and the project will create opportunity to meet this demand.