Wed 09 2015 07:28:49
Tashkent, Uzbekistan (UzDaily.com) -- Korea Gas Corp. (KOGAS) of South Korea plans to start operation of a gas field, Surgil, in Uzbekistan next month, Yonhap news agency reported quoting the firm.
The agency recalled that in 2008, a South Korean energy consortium signed an accord with Uzbekistan’s state-owned Uzbeknefgaz to jointly develop the Surgil gas block in western Uzbekistan near the Aral Sea.
The Surgil well is estimated to hold more than 130 million cubic feet of natural gas, the agency underlined.
KOGAS said earlier that its total investment is estimated at US$3.9 billion, with the company holding a 17.5% stake in the joint company. Other South Korean firms such as STX Energy Co. have participated in the project as well.
Gas produced from the well will be processed in a gas-chemical plant in the Central Asian country, and be sold in Uzbekistan or exported to Europe and China.
Uz-Kor Gas Chemical was founded by Uzbek and Korean companies in May 2008 to develop, finance, construct and exploitation of integrated gas and oil processing project in Ustyurt region of Uzbekistan.
Uzbekneftegaz owns 50% stake in the joint venture, while Uz-Kor Gas Chemical Investment holds 50% share. Korea Gas Corporation (KOGAS), Honam Petrochemical and STX Energy are Korean founders of the venture.
The cost of the project is US$4.16 billion. The project participants will allocate US$1.4 billion and attract US$2.5 billion from financial institutions to implement the project.
Ustyurt Gas Chemical Complex will ensure processing of 4.5 billion cubic meters of gas and produce 3.7 billion tank gas, 387,000 polyethylene and 83,000 tonnes of polypropylene, as well as 102,000 tonnes of pyrolized petroleum and other products.