Ustyurt Oil and Gas Plant

Ustyurt Oil and Gas Plant

Olimboyev Sardor

• On May 21, 2016 the Prime Ministers of Uzbekistan and the Republic of Korea Shavkat Mirziyoyev and Hwang Gyo An took part in the ceremony of completing the construction and launching of the Ustyurt Gas Chemical Complex, built on the basis of the Surgil field in Karakalpakstan. UzA reported.

• The implementation of the project with a total cost of $ 4 billion will make it possible to process 4.5 billion cubic meters of natural gas per year and thereby produce 3.7 billion cubic meters of commercial gas, 387 thousand tons of polyethylene, 83 thousand tons of polypropylene, 102 thousand tons of pyrolysis distillate and other valuable products.

• The Ustyurt Gas Chemical Complex, the construction of which began in 2012, includes five plants for gas separation, production of ethylene, polyethylene, polypropylene, energy supply, as well as modern infrastructure facilities. In total, the complex employs about 1300 specialists.

• In January last year, an experimental production process was started here. In 2015, more than 54.9 thousand tons of liquefied petroleum gas and over 34 thousand tons of gas condensate were produced. More than 1.8 billion cubic meters of ethane and commercial gas were directed to the main gas pipelines, more than 87.5 thousand MW of electricity to the energy system of Uzbekenergo.

• At present, the pyrolysis distillate is sent to the Bukhara oil refinery to produce gasoline. Polyethylene and polypropylene are already exported - more than 186 thousand tons of them have been delivered to the countries of Central and East Asia, CIS and Europe for 150 million dollars. By 2020, the volume of polyethylene production will grow 4.1 times.

• For the construction of the Ustyurt Gas Chemical Complex in February 2008, the Uzbekneftegaz National Holding Company and the Kor-Uz Gas Chemical Investment consortium comprising Korea Gas (KOGAS), Lotte Chemical and GS E&R established a joint venture Uz-Kor Gas Chemical on a parity basis.

• Ustyurt is a plateau in Kazakhstan and Uzbekistan, located between Mangyshlak and the Kara-Bogaz-Gol Bay in the west, the Aral Sea and the Amu Darya delta in the east. A plateau with an area of ​​about 200 thousand square meters. km is a clayey and clayey-gravelly desert. There are also sections of sandy desert. Very often it is the Ustyurt plateau that is called the border dividing Asia and Europe. The Ustyurt Plateau occupies vast spaces between the Aral and Caspian Seas and has a characteristic feature: a chink - a steep, inaccessible cliff with a height of about 150 m (the Eastern chink facing the Aral Sea reaches 190 m).

• According to scientists, the Ustyurt plateau is the bottom of a dried-up sea that existed in these places at the beginning and middle of the Cenozoic era (21 million years ago). This is evidenced by inclusions of shells in the limestone, as well as ferromanganese nodules, like billiard balls, scattered throughout the plateau. These "balls" formed at the bottom of the sea, and then, as more resistant to weathering, ended up on the surface when the surrounding limestone and dolomites were washed out by water. The flat desert relief, interrupted by chalk deposits in the form of rocks and cracks appearing here and there, looks like a Martian landscape from a Hollywood movie and it seems that by incredible chance you are exploring another, unfamiliar planet.

• The Ustyurt plateau is especially beautiful during sunsets and sunrises. Chalk cliffs during sunsets and sunrises provide an impressive picture, when the white rocks are painted in crimson colors. The flora and fauna of Ustyurt does not immediately open to the eyes of travelers. Gradually, getting used to the unusual natural conditions, you can see colonies of gerbils, ground squirrels and jerboas. It is home to a large number of birds of prey - vultures and eagles, which proudly sit on the cliffs of the chink. You can also see saigas, although it is unlikely that amateur photographers will be able to capture these shy and very fast animals on their camera. But travelers can take pictures of Ustyurt argali in their natural habitat. What is most surprising is the presence of wild horses on the Ustyurt plateau. They say that earlier there were farms of Kazakh nomads, but the horses ran wild and took root on the plateau, where they still live.

• February 11, 2010 In the city of Seoul, an Investment Agreement was signed between the Government of the Republic of Uzbekistan, the Consortium of Korean Companies, the Uzbekneftegaz NHC and the Uz-Kor Gas Chemical JV LLC, the main goal of which is the construction of the Ustyurt gas and chemical complex based on the Surgil field with the field development. Thus, the Ustyurt Gas Chemical Complex (hereinafter UGCC) was built for the production of gas and condensate at the Surgil field and its processing.

• Ha Su Yang, President and Chief Executive Officer of the South Korean company LOTTE CHEMICAL, announced the completion of the gas chemical complex in October 2015: “The completion of the gas chemical plant is the result of close cooperation between the Governments of Korea and Uzbekistan and private companies. This plant is the largest in Eurasia built by a Korean chemical company, "said Ha Su Young. The construction cost of the complex was about $ 3.89 billion.

• MCC products will be exported to Central Asian countries, Russia, Europe and North Africa.
• Ustyurt Gas Chemical Complex is located in the north-western part of Uzbekistan (Republic of Karakalpakstan, Kungrad region, Akchalak village), in the southern part of the Ustyurt plateau. Ustyurt Gas Chemical Complex will process 4.5 billion cubic meters. m. of gas per year on the basis of gas condensate fields Surgil, Vostochny and North Berdakh and other fields.

• The processed products will be 400 thousand tons of high density polyethylene (HDPE), 100 thousand tons. tons of polypropylene, commercial gas, pyrolysis distillate and pyrolysis oil. In addition, the Ustyurt Mining and Chemical Complex will sell excess electricity generated in excess of its needs.

• This project is carried out with the attraction of project financing in compliance with all principles of project financing. Currently, a consortium of lenders has formed, consisting of the Asian Development Bank, the Korean Export-Import Insurance Corporation K-SURE, and the Korean Export-Import Bank KEXIM, with which the terms of the provision of borrowed funds, as well as the provision of insurance coverage for other international banks.

• In parallel, lenders and their consultants carry out a thorough survey of all areas of the project. JV LLC "Uz-Kor Gas Chemical" to this project, unique for the Republic of Uzbekistan, has attracted various international and domestic consultants, such as:
• - Financial Advisor - ING Bank (UK);
• - International Legal Advisor - Dewey & LeBoeuf (Great Britain);
• - Local legal advisor - Leges Advokat (Uzbekistan);
• - Consultant on taxes and accounting - PriceWaterHouseCoopers (Uzbekistan);
• - Consultant on ecology and social issues - MottMacDonald (Great Britain);
• - Insurance Consultant - Willis (UK);
• - Management systems consultants - SMS SYSTEMS (Business Advisory Group) (Uzbekistan)

• Currently, the consultants of our company are actively working on building an Integrated Management System in accordance with the requirements of international standards ISO 9001: 2015, ISO 14001 and OHSAS 18001 and the requirements of social responsibility.

• In 2018, the first 66 thousand tons of polypropylene will be produced at the Ustyurt Gas Chemical Complex.
• In 2019, the production will reach its design capacity of 83 thousand tons / year.
• The demand for polypropylene - the second most common polymer in the world - is growing by 4-6% annually.
• Polyethylene production will also grow by 4.1 times, from 125 thousand tons in 2015 to 512 thousand tons in 2019.

• Ustyutsk Gas Chemical Complex is located in the Kungrad region of Karakalpakstan.
• This is a joint Korean-Uzbek project implemented by Uzbekneftegaz and the Korean consortium Kor-Uz Gas Chemical Investment within the framework of the Uz-Kor Gas Chemical JV.

• The cost of the project was about 4 billion US dollars, of which 2.5 billion US dollars were attracted from a consortium of foreign banks, 100 million US dollars - from the Fund for Reconstruction and Development of Uzbekistan, the rest of the amount was the funds of the founders of the joint venture.

• The MCC is capable of processing 4.5 billion m3 / year of natural gas with subsequent production of commercial gas (more than 3 billion m3 / year), polyethylene of various density (387 thousand tons / year), polypropylene (83 thousand tons / year) and pyrolysis gasoline (102 thousand tons / year).
• The Ustyurt Gas Chemical Complex includes 5 main plants (for gas separation, for the production of ethylene, polyethylene, polypropylene, and for the supply of energy resources).

• The raw material base of the Ustyurt Gas Chemical Complex is the Surgil, West and East Berdakh deposits.
• The Ustyutsk Gas Chemical Complex was launched in May 2016, but trial production began only in 2017.
• In total, more than 54.9 thousand tons of liquefied hydrocarbon gas (LPG), over 34 thousand tons of gas condensate were produced.

• In 2017, more than 1.8 billion cubic meters of ethane and commercial gas were sent to the main gas pipelines (MGP), more than 87.5 thousand MW of electricity to the Uzbekenergo energy system.
• The resulting pyrolysis distillate was sent to the production of gasoline at the Bukhara refinery.

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