Uzbekistan intends to implement 33 projects worth $8 billion in oil and gas sector

On February 21, 2019, President Shavkat Mirziyoyev held a meeting on the analysis of the impact of ongoing reforms in the oil and gas, as well as chemical industries, on the systemic development of these industries.

Our country is consistently working on the integrated development of the fuel and energy sector and the diversification of energy sources. This is an important factor in meeting the ever-increasing demand of the population for energy in the sectors of economy and industry.

The investment program for the current year includes 26 projects related to the industry with a total value of $27.8 billion. The President noted the need for daily monitoring of these projects and ensuring their timely and high-quality implementation.

The Ministries of Energy and Finance have been instructed to determine the conditions for supporting foreign loans of $2.3 billion under the project “Organizing the production of synthetic liquid fuel based on purified methane of the Shurtan gas-chemical complex”, to attract a $300 million loan from Gazprombank (Russia) on the project “Expansion of production capacities of the Shurtan gas-chemical complex”.

The need to allocate funds for the implementation of such projects as the production of liquefied gas at the Mubarek gas processing plant, the Shurtanneftgaz and Gazlineftgaz enterprises, the extraction of oil and gas, and the need to purchase geological exploration equipment were noted.

The leadership of Uzbekneftegaz and Uzkimyosanoat were entrusted with preparing a concept for producing high value-added products - polymers, polystyrene, PET, synthetic rubbers and presenting it to foreign investors at the upcoming international oil and gas conference in Tashkent this May.

The meeting considered the need to develop proposals for improving the system of Uzbekneftegaz JSC, revise tariffs based on market principles, gradually transfer tank farms and regional gas supply services, in particular the Fergana Oil Refinery, to public-private partnership.

The state of affairs in the chemical industry, which is inextricably linked with the oil and gas sector, was also discussed.

For the development of the chemical industry and the diversification of production, it is planned to implement 33 projects worth $8 billion.

In particular, the task was set to reach agreements with foreign partners on the Kokand superphosphate plant, the Kungrad soda plant, and also to find investors for the construction of a plant for the production of ammonia and carbamide in the city of Yangiyer.