Uzbekistan to Borrow $650mn for Oil, Gas Projects
Uzbekistan plans to borrow $650mn from foreign financiers this year to fund oil and gas projects, according to a decree issued by President Shavkat Mirziyoyev, local media reported on April 6. Some $250mn in loans are due to come from China's Silk Road Fund.
Earlier, state-run Uzbekneftegaz had intended to sell a $1bn of Eurobonds in mid-2020 and borrow a further $1bn from the Asian Development Bank.
Overall energy-related investments in Uzbekistan totalled $2.97bn in 2019, of which $1.56bn came from abroad. The country produced 60bn m3 of gas, 2mn mt of condensate and 1mn mt of oil that year. The government plans to raise production of petroleum products by 180% and gas production by 120% by 2030, though weaker prices put that plan into question.
The country has also major downstream projects like the $3.6bn Oltin Yol gas-to-liquid plant (GTL), slated for completion by the end of this year. It will convert 3.6bn m3/yr of gas into 37,000 b/d of synthetic fuel.