Jizzakh Petroleum announces major step towards construction of a new gas chemical complex in Uzbekistan based on MTO technology

TASHKENT, Uzbekistan, Sept. 1, 2020 /PRNewswire/ -- Further to the May 2019 announcement regarding the launch of a project to build a new state-of-the-art chemical complex in Uzbekistan based on MTO technology ('The Project'), and in accordance with the decision of the Cabinet of Ministers of Uzbekistan, Jizzakh Petroleum is pleased to announce it is now a major investor in the Project.

A chemical complex of such a scale and technical capabilities has no comparison in the CIS region. The decision has been taken to build the plant in the Bukhara region of Uzbekistan, where it will operate using domestic feedstock. This will allow natural gas monetization via the production of export oriented and high value-added products.

Successful completion of the project will further diversify Uzbekistan's economy, develop its domestic textile, chemical and parapharmaceutical industries, and reduce import levels into Uzbekistan.

The plant's location was determined by the presence of competitive feedstock and energy supplies, suitable infrastructure, and proximity to key markets across Europe and Asia, consolidating the role of Uzbekistan as the energy leader in the region.

General Director of JV Jizzakh Petroleum, Shokir Fayzullayev, said:

"Even in these current difficult times we are happy to report progress in this unique and ambitious project. We are keen to play a key role in enabling a new carbon economy for Uzbekistan and the region as a whole by supporting innovative projects and solutions on the way to a cleaner and safer future."

"We aspire to create a world-class chemical company making great products for society, and this project is fully aligned with our vision. Our approach is not limited to our immediate operations, but we take the entire supply chain and the interests of all stakeholders into account. We look forward to working closely with all our partners and consultants to implement this visionary state-of-the-art complex that will contribute to our economy and to the people of Uzbekistan and Central Asia at large."

Continuous work on the Project has been carried out and the first, preparatory stage is now completed, despite the challenges of the Covid 19 pandemic. Consulting and technical partners including IHS Markit, Nexant, and Amec Foster Wheeler (Wood) have concluded marketing analysis and feasibility studies on the project. The final stage of licensor selection is currently underway and once completed the next stage of the project, FEED, will begin.

Following a screening study, IHS Markit selected 18 end products for the next stage from 47 olefin derivatives. Nexant then completed a detailed marketing study for the 18 product types, from which low-density polyethylene (LDPE), ethylene-vinyl acetate (EVA), polyethylene terephthalate (PET), polypropylene (PP) were chosen for planned production. These results became the basis for drawing up various options for the basic configuration of the future plant. AFW conducted a research into the project configuration and selected the optimal option for the configuration of the future gas chemical complex. According to the feasibility study the estimated cost of construction is $2.8bn.

When completed, a new 500,000 tons state-of-the-art olefins plant is expected to process 1.5bcm of natural gas per annum and manufacture high-quality polymers used in many sectors of the worldwide economy.

About Jizzakh Petroleum

Jizzakh Petroleum JV LLC ('The Company') was created to boost the development of Uzbekistan's energy sector.

The Company was formed in June 2017, in accordance with the Resolution of the President of the Republic of Uzbekistan dated May 3, 2017, to undertake various large-scale exploration, construction and modernization projects including the modernization of the Fergana refinery.

Jizzakh Petroleum owns operating rights to 104 oil fields in Uzbekistan. The Company has a track record of successful collaboration with such international companies as Gazprom, Amec Foster Wheeler (Wood), and Axens, among others.

SOURCE Jizzakh Petroleum