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    Uzbekistan Sees More Money Flow into Gas Projects

Summary

Decree outlines what is being spent this year and where

by: Iran desk

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Natural Gas & LNG News, News By Country, , Uzbekistan

Uzbekistan Sees More Money Flow into Gas Projects

The landlocked central Asian republic of Uzbekistan expects to see 8% more spent this year than last on developing and upgrading the gas industry. This year’s investment is planned to reach $2.798bn, according to the decree of the president Islam Karimov.

The sum comprises $2.1bn in foreign investments, $216mn from state Uzbekneftegaz, $300mn from the Uzbekistan fund for reconstruction and development and loans of $172mn from local banks.

Russian Lukoil will invest $879mn in two projects this year: a gas refinery in Bukhara and developing the Kandym field project. The total cost of Kandym is $8bn and is expected to yield 8bn m³/yr of natural gas.

This year, China’s CNPC will start building the fourth line of the Uzbek section of the Central Asia-China gas pipeline. That section will cost in all $800mn.

The length of the line, which will connect the existing gas pipeline infrastructure in Uzbekistan with the site in Tajikistan which is already being built, will be about 200km.

Uzbekneftegaz will also complete the development of two fields in Kashkadarya province in the south of the country, totalling $294mn; and will continue upgrading the Mubarek gas refinery which will total $437.4mn.

According to BP’s statistical review, the country produced 3.1mn mt of oil and 57bn m³ of gas in 2014, the latest year for which BP data is available.

Iran desk