LUKOIL is to build a gas processing factory in Uzbekistan
Sources close to officials at Uzbekneftegaz say LUKOIL, beginning in the second half of 2008, will begin construction of a gas processing factory in Uzbekistan. This project will be part of the development of the Kandym oil fields. The Uzbek Cabinet has adopted resolutions enabling the Russian company to work on the technical and economic assessment of the project while, simultaneously, beginning construction on infrastructure needs, including the gas-chemical factory. "A series of tenders is to be organized in the near future for the businesses that will provide equipment and assist in building the complex," a source said.
According to the interim technical and economic assessment, pumping capacity of the complex will amount to 8 billion cubic meters of gas, 6,500 million tons of conditioned marketable gas, 213.6 thousand tons of stable condensed gas, 17.5 thousand tons of liquefied gas and 191.1 thousand tons of sulfur. Construction of the complex is to be completed in 2011. It is not known what the construction cost is.
Last autumn, LUKOIL launched gas production in Uzbekistan within the framework of the Kandym-Khauzak-Shady production sharing agreement signed in summer 2004. Gazprom has an export monopoly on all gas produced in Uzbekistan. By and large, LUKOIL is expected to invest nearly $5.5 billion in Uzbekistan by 2015. Annual gas production by that year is supposed to reach 16 billion cubic meters.