Uzbek and South Korean PMs attend completion ceremony of petrochemical complex project

A ceremony to celebrate the completion of construction and commencement of operations of the Ustyurt Gas Chemical Complex (UGCC) at the Surgil field was held on 21 May. 

It was noted at the event that cooperation between Uzbekistan and South Korea has been steadily developing in the oil & gas sector and chemical industry among other spheres, based on the agreements reached during the meetings of the heads of the two countries. The state visits of President Park Geun-hye to the Republic of Uzbekistan in June 2014 and President Islam Karimov to the Republic of Korea in May 2015 have elevated mutually beneficial cooperation to a qualitatively new level. 

Under the leadership of President Islam Karimov huge accomplishments have been achieved in diversifying and modernization of the economy, production of high-tech and competitive products. As a result of the strategy of establishing special complexes on deep processing of hydrocarbon reserves, an oil and gas industry, based on advanced technologies, has been formed. Today this sphere is dynamically developing.

A significant attention is paid not only to increasing the volume of extraction and processing, but also to widening the assortment of manufactured products, based on processing of raw materials. Macroeconomic stability has been secured in our country. Thanks to this many developed countries, leading international financial organizations cooperate with our country, large modern complexes and enterprises are being constructed. 

The Republic of Korea is a strategic, one of the main investment and technological partners of the Republic of Uzbekistan. Following regular negotiations of the Presidents of the two countries a mutually beneficial cooperation has been steadily developing. Many strategic projects are under implementation in difference spheres of the economy, including in the oil and gas sector, with active involvement of South Korean entrepreneurs. South Korean companies productively cooperate in conducting exploratory works, developing hydrocarbon deposits in different regions of Uzbekistan. 

The Ustyurt Gas Chemical Complex, constructed at the Surgil field, is a vivid example of Uzbek-South Korean collaboration. Its construction has been carried out within the frameworks of the Program of wide-scale industrial modernization of the country, approved by the head of our state. This is the first large-scale project in the oil and gas sector not only in Uzbekistan, but in the whole CIS, implemented on the basis of long-term financing. 

Prime Minister of the Republic of Korea Hwang Kyo-ahn underlined that Uzbekistan is the main strategic partner of South Korea in Central Asia. The Republic of Korea attaches high priority to developing mutually beneficial cooperation with Uzbekistan in trade-economic and investment spheres and successful commissioning of the Ustyurt Gas Chemical Complex will serve to further develop fruitful cooperation in the oil and gas sector, as well as chemical industry. 

- Under the leadership of President Islam Karimov, Uzbekistan has become a leading country in Central Asia, - said Hwang Kyo-ahn. - The authority of Uzbekistan on a global scale is growing consistently. It is noteworthy that in the last eleven years, the growth rates of the gross domestic product of Uzbekistan have been over 8 percent, the economic modernization program has been successfully implemented. The Ustyurt gas chemical complex is a shining example of friendship and fruitful cooperation between our countries. 

The Ustyurt Gas Chemical Complex is one of the largest projects in the world. This complex has received high recognition in prestigious international media. In particular, in 2012 Project Finance International named construction project of Ustyurt Gas Chemical Complex on the base of Surgil gas field an international project of the year in nomination “Deal of the year in oil and gas chemistry”. The project has been awarded international prizes "Best Deal of 2012" according to "Trade Finance Magazine" and "Global Trade Review". 

The project was also recognized by Infrastructure Journal (IJ) as the 2013 Oil & Gas Deal of the Year on 13 March 2014. 

The project worth 4 billion US dollars can annually process 4.5 billion cubic meters of natural gas and produce 3.7 billion cubic meters of marketable gas, 387 thousand tons of polyethylene, 83 thousand tons of polypropylene, 102,000 tons of pyrolysis distillate and other valuable products. 

- We are pleased and proud to have contributed to the construction of such a large complex, - said the project manager for construction of the UGCC, a spokesman for the company "Hyundai Engineering" Kim Wan Su. - Uzbekistanis a country with a high intellectual potential. President Islam Karimov pays special attention to the full support of the youth, training of highly qualified personnel, which is once again evident in the work of professional young specialists of Uzbekistan, who worked on the construction of this complex. We further intend to develop cooperation and expand joint projects. 

- Attractive conditions, privileges and preferences in Uzbekistan for effective action are an important factor in the wide attraction of investments into the country, said Lotte Group Chairman Shin Dong-bin. - This is confirmed by the fact that many international financial institutions, firms and companies are implementing a number of major joint projects in Uzbekistam. Continued support of President Islam Karimov in implementation of the project, close cooperation between our countries allowed timely completion of construction of the complex. UGCC will make a significant contribution to the development of oil & gas and chemical industry in Uzbekistan, further development and strengthening of our relations. We are sincerely grateful to the Presidents of the Republic of Uzbekistan and the Republic of Korea for their support in the implementation of the project. 

- Under the leadership of President Islam Karimov, Uzbekistan's economy is developing dynamically, said Kogas president Lee Seung Hoon. - We have good cooperation with Uzbekistan in various fields. One of them is the Ustyurt Gas Chemical Complex. We are interested in further development of mutual relations, development and implementation of new joint projects. 

The Ustyurt Gas Chemical Complex includes five plants: gas separation, ethylene, polyethylene, polypropylene, utilities and offsites as well modern infrastructure facilities. All of them are equipped with modern high technologies and advanced equipment. Around 1,300 professionals work in the complex. More than three hundred of them are college graduates. 

- After completing my studies at the college I went to work in the gas-chemical complex, said operator of UGCC polyethylene plant Azizbek Kaliev. It is an honor to work for such a big enterprise. There are all conditions for effective work and meaningful leisure time. 

Production process at the UGCC was launched last year. Over 54.9 thousand tons of liquefied petroleum gas, more than 34 thousand tons of gas condensate were produced last yeat. Over 1.8 billion cubic meters of marketable gas and ethane were sent to gas pipelines, more than 87.5 thousand megawatts of electricity transported to the energy system of Uzbekenergo JSC. Currently pyrolysis distillate is sent to the Bukhara oil refinery to produce gasoline. Polyethylene and polypropylene are exported to several countries in the world. To date, over 186 thousand tons of polyethylene and polypropylene for a total value of 150 million US dollars have been exported to Central and East Asia, CIS and European countries. By 2020, the volume of polyethylene production will increase by 4.1 times. 

In brief, the Ustyurt Gas Chemical Complex will serve for a stable economic growth of our country and improving living standards. 

The event was attended by Prime Minister of Uzbekistan Shavkat Mirziyoyev and Prime Minister of the Republic of Korea Hwan Kyo-ahn.

Nodira Manzurova, UzA