Page 17 - FSUOGM Week 07 2021

FSUOGM NEWS IN BRIEF FSUOGM

Pakistan. cubic metres of gas per year. The company comparison in the CIS region based on its
Construction on the 816-km Afghan also completed work on the construction of planned scale and technical capabilities.
section of the TAPI pipeline officially began a pre-factory zone, a road system, external When completed, the new state-of-the-
in February 2018, but nearly three years later power and water supply facilities, a collection art complex is expected to process 1.5bcm
no significant progress has been reported system and an export gas pipeline. of natural gas per annum and manufacture
despite some security assurances from the In March 2018, it commissioned its first more than 700,000 tonnes/yr of high-quality
Taliban. petrol station, which in 2020 was recognised polymers.
Moreover, the current state of the as the best petrol station in the capital. Successful completion of the project will
Turkmen section of the pipeline also remains Deputy Energy Minister Behzot further diversify Uzbekistan’s economy,
shrouded in mystery. . Normatov in November last year reported developing its domestic textile, chemical and
that Uzbekistan was working with Lukoil parapharmaceutical industries. It will also
on the basis of a public-private partnership reduce Uzbekistan’s demand for imports.
Lukoil plans to bring under a production sharing agreement Petroleum has inked six technology licence
Since the beginning of this year, Jizzakh
(PSA).
Gissar gas production in enterprise remains with the state. To date, agreements with leading international
"80-85% of the money received by the
companies, namely Chemtex (Invista)
Uzbekistan to project level the state's revenue from Lukoil projects (USA), Scientific Design (USA), Versalis
has exceeded $4bn, and Lukoil has earned
(Italy), Haldor Topsoe (Denmark), Grace
in 2021 a little more than $1bn in the country by (USA), Sinopec (China)
These milestones follow the September
selling gas to Uzbekistan. At the same time,
Lukoil, one of the biggest players on the Uzbek the company invested $7bn in this project, 2020 announcement on site selection and
oil and gas market, on February 12 said that becoming one of the largest investors in the the completion of marketing and feasibility
it was planning to bring gas production at the country," he said. studies by consulting and technical partners
Gissar project to project level this year. Meanwhile, the PSA with Lukoil on the IHS Markit, Nexant, and Wood.
In the summer of 2020, Lukoil was forced Kandym-Khauzak-Shady project is in effect Other milestones include:
to completely suspend gas production at until 2046, with the term on the Gissar Jizzakh Petroleum has engaged White &
Gissar due to falling demand in China. This project ending in 2043. Case as the project’s legal advisor and Mott
break was put to use for routine maintenance Today, Lukoil employs more than 2,700 MacDonald as Environmental and Social
work. In September, deliveries to China people in Uzbekistan, of which more than Impact Assessment consultant;
resumed, but only in small volumes. 92% are Uzbek citizens. An agreement has been signed with
Lukoil began operating in Uzbekistan Lukoil Uzbekistan Operating Company Woodon FEED
more than 15 years ago. Its total investment has several times received "The Best Formal letters of intent have been received
across all projects in the country stands Employer in Uzbekistan" and "Most from SACE (ECA of Italy) and Bank Intesa
at about $8bn. The company produced its Desirable Employer in the country" awards. Sanpaolo (Italy) for financing FEED;
first gas at the Hauzak-Shady section of the pipeline’s costs are estimated at $10bn. Negotiations have taken place with Marco
Dengizkul field in 2007. Polo International (USA) and KTM Kimyevi
In 2011, Lukoil Uzbekistan Operating Maddeler (Turkey) for the offtake of polymer
Company produced its 10-billionth cubic Jizzakh Petroleum reports products
meter of gas. Five years later, in 2015, ita Minister of Energy of Uzbekistan
announced the 30-billionth. licensing agreements and Alisher Sultanov said: “The Government of
In September 2017, Lukoil successfully Uzbekistan welcomes the progress that has
launched the main production and other progress in building been achieved in relation to this Bukhara
technological facilities of the South-West complex. We view this project as a model
Gissar project. Among the commissioned Uzbek methanol-to-olefins for future interaction between Uzbekistan
facilities were a complex gas treatment plant business and international partners. This
with a nominal capacity of 4.4bn cubic complex partnership is the key to the accelerated
metres per year, a gas pretreatment plant, as development program being implemented
well as four gas collection points. Jizzakh Petroleum, an oil and gas company by our government, in particular, the
In November of the same year, Lukoil focused on developing Uzbekistan’s energy Ministry of Energy. Having completed site
commissioned the first line of the Kandym sector, has announced significant progress in selection just last year, we are delighted that
Gas Processing Plant (GPP). The first line the construction of a new gas-to-chemicals discussions with Jizzakh Petroleum have so
of the plant was put into operation five complex based on methanol-to-olefins (MTO) quickly led to this series of agreements with
months ahead of schedule. The capacity of technology. major international licensors.”
the first line is designed to process 4.05bn The MTO project is said to have no

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