Page 8 - FSUOGM Week 32

FSUOGM COMMENTARY FSUOGM

Uzbekistan makes headway

at GTL project

Central Asia is seen as an optimal location for GTL technology, given its abundant

gas resources, difficulty monetising them and insufficient fuel production

UZBEKISTAN UZBEKISTAN has broken ground on a pipe- Road to realisation
line to bring gas to a gas-to-liquids (GTL) Central Asia is seen as an optimal location for
WHAT: plant due to start production in early 2021, GTL technology, given the region’s abundance
Uzbekistan is building a state-owned Uzbekneftegaz (UNG) reported of gas, geographical difficulty in monetising
pipeline to supply gas to on August 11. Back in March, work also began these resources and insufficient fuel production.
a GTL plant due to start on a railway to deliver the plant’s finished prod- Uzbekistan is endowed with some 1.2 trillion
up in early 2021. ucts to market. cubic metres of proven gas reserves, according
The $3.6bn Oltin Yo’l GTL project is among to BP data, but its only significant customers for
WHY: several flagship investments in Uzbekistan this gas abroad are Russia and China. Russia only
The project will convert aimed at converting the country’s gas into high- buys Central Asian gas when it is competitive
gas into fuels for er-value products. It will produce a number of against its low-cost domestic supplies, whereas
domestic use, providing synthetic fuels for domestic use in key economic China has many import options, enabling it to
a significant boost to sectors. drive down prices.
Uzbekistan's economy. The plant’s start-up schedule has been With neither market offering much in the
repeatedly pushed back over the years, how- way of value, Uzbekistan is looking to utilise as
WHAT NEXT: ever, largely owing to delays securing financ- much gas as possible domestically. Indeed, its
The coronavirus ing. Last month, a coronavirus (COVID-19) Prime Minister Abdulla Aripov announced in
pandemic could mean outbreak also led to authorities evacuating January that the government would aim to bring
that work falls behind some 9,000 workers from the site, bringing gas exports down to zero within five years, from
schedule. construction to a halt. roughly 12bn cubic metres in 2019.

P8 www. NEWSBASE .com Week 32 12•August•2020