Page 9 - FSUOGM Week 23 2021

FSUOGM INVESTMENT FSUOGM

Uzbekistan taps Russian money for

petchem, fertiliser projects

UZBEKISTAN UZBEKISTAN has reached out to Russian very lucrative. Russia has plenty of gas of its own,
financiers to help realise petrochemical and fer- while China enjoys a diverse mix of suppliers,
Uzbek officials were at tiliser projects. and gas shipments to either country must trav-
SPIEF last week. The Central Asian state is looking to expand erse significant distances.
production of petrochemicals and fertilisers as The government in Tashkent wants to reduce
part of a push to develop its natural gas and other gas exports to zero by 2025, using the resource at
resources into higher-value commodities for use home to generate power and produce more val-
at home and overseas. Many of the projects it is uable commodities. One of the largest projects
developing have heavy Russian involvement, it is developing is a $3.6bn gas-to-liquids (GTL)
with Moscow keen to retain its influence in the plant, due to convert 3.6 bcm per year of gas into
former Soviet State despite an encroachment by 1.5mn tpy of kerosene, diesel, naphtha and LPG.
China since the downfall of the USSR. Other MoUs were reached in St Petersburg
Uzbek officials were in Russia last week to between Cyprus-registered Ferkensco Manage-
attend the St Petersburg International Economic ment and Gazprombank, on financing for an
Forum (SPIEF). Among the deals reached ammonia plant and a complex mineral fertilisers
between the two countries, Jizzakh Petroleum, plant.
a joint venture between Uzbekistan’s national oil Site surveys for the ammonia plant in the
and gas company Uzbekneftegaz and Russian Sydarya region kicked off in late 2020, and Ferk-
counterpart Gazprom, signed a memorandum ensco reached an agreement on the project with
of understanding (MoU) with Russian state the regional government in March. It is in talks
lenders Gazprombank, VEB.RF and the Rus- with Switzerland’s Casala on licensing out tech-
sian Agency for Export Credit and Insurance nology for the facility. At full capacity, the plant
for a methanol-to-olefins (MTO) plant in the will produce 495,000 tpy of ammonia.
central Bukhara region. The deal envisages up Supplied with phosphorite deposits, the fer-
to $800mn of financing and insurance coverage. tiliser facility in the Samarkand region will turn
Jizzakh’s $2.8bn MTO project will process out up to 900,000 tpy of complex mineral fertil-
around 1.5bn cubic metres per year of natural isers beginning in 2023.
gas into around 720,000 tonnes per year (tpy) of Russian financiers are also expected to sup-
polymers. Attached to the project are technology port other projects underway in Uzbekistan’s
providers Chemtex, Scientific Design and Grace energy sector. In April, VEB.RF and Gazprom-
from the US, China's Sinopec, Denmark's Hal- bank were revealed to be preparing to provide
dor Topsoe and Versalis, owned by Italy's Eni. funding for the $1.75bn for the 25 Years of Inde-
The project operator previously said it was in pendent (M25) gas project. Russian institutions
talks with US-based Marco Polo International are expected to contribute $900mn. VEB.RF and
and Turkey’s KTM Kimyevi Maddeler on poten- Gazprombank are also considering a $618mn
tial offstake supplies from the facility. syndicate loan to improve Uzbekistan’s creaking
Uzbekistan currently exports its spare gas to gas pipeline system, much of which was built in
China and Russia, although neither market is the Soviet era. ™

Week 23 09•June•2021 www. NEWSBASE .com P9