Uzbekistan raises $2.3 billion to build GTL plant
The project to build a gas-to-liquids plant in southwestern Uz-bekistan's Kashkadarya region will receive $2.3 billion in financing under an agreement that project company Uzbekistan GTL and Uzbekneftegaz signed in Tashkent on Saturday with an international financial consortium.
The consortium includes State China Development Bank, Export-Import Bank of Korea, Korea Trade Insurance Corporation K-SURE, Gazprombank, Russian export credit agency EXIAR, Credit Suisse, and Japanese banks MUFG, SMBC and Mizuho, Uzbekneftegaz reported.
Under the agreement, China will provide over $1 billion for Uzbekistan GTL, South Korea - $600 million and the other creditors - about $700 million.
The project will cost an estimated $3.6 billion in all, of which Uzbekistan's Reconstruction and Development Fund will provide $740 million and Uzbekneftegaz will invest $570 million of its own money.
At the signing ceremony, Uzbekneftegaz CEO Bahrom Ashrafkhanov said that the GTL project "is one of the biggest in Uzbekistan and the entire region." The new facility will expand Uzbek-istan's capacity for high value-added processing of natural gas and dramatically reduce imports of hydrocarbons.
At the current stage of implementation, including engineering work and equipment purchasing, the project is 64% completed, including 23% of the construction work.
Output from the new plant, scheduled to enter service in 2020, will substitute for 1.5 million tonnes of oil product imports a year worth over $1 billion.
The plant will process 3.6 billion cubic meters of gas a year into 1.5 million tonnes of synthetic Euro 5 liquid fuels, including 311,000 tonnes of aviation kerosene, 743,000 tonnes of diesel fuel, 431,000 tonnes of naphtha and 53,000 tonnes of liquefied gas
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