UzKor GasChemical, Asian Development Bank (ADB) KEXIM and KSURE completed to agree key conditions of financing of the project “Construction of Ustyurt gas chemical complex on the base of Surgil deposit with construction of the field”.

The press service of Uzbekneftegaz national holding company said that the ceremony of signing of the document was held in Seoul. The details of the agreement were not disclosed.

Uz-Kor GasChemical and creditors also agreed further steps and action schedule till the sining of general financing terms and loan agreement till the end of 2011.

The project with the cost of US$4.1 billion, along with the loans for creditors, will be also financed due to own resources of Uzbekneftegaz for US$200 million and loan of the Fund for reconstruction and development of Uzbekistan for US$500 million.

In February 2008, Uzbekneftegaz and South Korean consortium created a joint venture UzKorGasChemical for construction of the Ustyurt Gas-Chemical Complex on the base of Surgil deposit. The consortium included Kogas, Lotte Daesan Petrochemical Corp. (in 2009, it was replaced with Honam Petrochemical), LG International Corp., SK Gas and STX Energy.

In 2009, Samsung Engineering (South Korea) and Uzbekneftegaz’s UzLITIneftegaz developed preliminary feasibility study of technological part of the project, which envisaged construction of the complex with the capacity of 4.5 billion cubic meters of gas and production of 400,000 polyethylene and 100,000 tonnes of polypropylene.

Uzbekneftegaz is conducting gas-field construction of Surgil field with its own forces. The field will annually supply 3 billion cubic meters of gas to the Ustyurt Gas-Chemical Complex. Another 1.5 billion cubic meters of gas will be supplied to the complex from other fields in Ustyurt region.

Surgil field was opened in March 2006 and now it is developed by Uzbekneftegaz. Its reserves, according to the Uzbek side, make up about 120 billion cubic meters of gas.