The Decree of the head of state, dated December 29, 2016, defined additional measures for the investment project “Organization of production of liquid synthetic fuel on the basis of purified methane of the Shurtan Gas Chemical Complex”. During his visit to the Kashkadarya region in February 2017, the President visited the construction site of the plant and deeply analyzed the issues related to its financing and equipping with overseas technologies, provision of builders and personnel. President Shavkat Mirziyoyev visited the construction site again on December 13, 2018. Much has changed over the past period. Active work are underway on the area of more than 135 hectares. The foundation has already been laid here, and the reinforced concrete frames have been installed. The huge tower cranes are in operation, assembly complex structures was started. The plant is constructed on the basis of the technologies provided by licensors – the global leading companies “Sasol” (South Africa), “Haldor Topsoe” (Denmark) and “Chevron” (USA). Construction works are carried out by the EPC contractors – Hyundai Engineering Co. Ltd., and Hyundai Engineering and Construction Co., Ltd of South Korea, and Enter Engineering Pte. Ltd. of Singapore. The most of the builders and welders are local youth. The process equipment required for the complex, that is more than 11 thousand items, is manufactured by 126 plants in 21 countries, such as Japan, South Korea, Singapore, USA, Germany, Italy, China, Russia. The scale of the project is amazing. The process of production of synthetic liquid fuel (GTL) from natural gas is a unique and it is an ambitious task that requires advanced technology and complicated scientific solutions. Today, there are five such plants in the world, the plant in Shurtan will be the sixth one. The total cost of the large-scale project is USD 3.6 billion. The implementation of the project will enable a deep processing of 3.6 billion cubic meters of gas, and production of 1.5 million tons of synthetic liquid fuel in compliance with the Euro-5 standard, including 311 thousand tons of jet fuel, 743 thousand tons of diesel, 431 thousand tons of naphtha and 53 thousand tons of liquefied gas. This is the very importance of the plant for the country’s economy – to export natural gas not in the form of feedstock, but as a finished product with added value. For instance, if today, the average export price of 1000 cubic meters of gas is 155 dollars, the future plant will produce items of 300 dollars’ worth through the processing of the same volume of gas. In overall, it will be possible to make annual income by 576 million dollars from the production of GTL products than from the simple export of natural gas. Another important point – the plant’s products will replace their analogues, which are now imported. More than 1 billion dollars of foreign currency funds will be saved annually, which now are spent for the purchase of oil from abroad. After the start-up of the plant, more than 1,300 people will get the jobs. President Shavkat Mirziyoyev got acquainted with the progress of construction of the complex, talked with representatives of contractors and investors. “Having carefully thought all aspects over, we decided to implement a project of historical importance for the production of synthetic liquid fuel, which will replace import for 1 billion dollars. This is very important for the stability of the economy of Uzbekistan. To date, the range of the industry did not have the production of this kind. When the production of fuel begins and the cost of gasoline decreases, people will definitely feel it,” Shavkat Mirziyoyev said. The head of state noted that it is necessary to accelerate the start-up of the plant, with involving of maximum of specialists, equipment and resources, and accurately coordinating construction and installation works, in order to start production as soon as possible. He instructed the responsible persons to develop proposals to accelerate the start-up of the plant. The close location of the plant to the Shurtan Gas Chemical Complex simplifies their joint use of infrastructure. Another project is being implemented here, which is the expansion of the capacity of the Shurtan Gas Chemical Complex from 125 to 505 thousand tons. It is planned that the complex will process naphtha produced by GTL plant and produce new types of polyethylene and polypropylene products. As a result, those capacities will form a single process cluster, which will give a new stimulus to the development of chemical, automotive, pharmaceutical, textile industries, tourism and others.

Kirchner Italia has manufactured 7 sets of process equipment (heaters) for the GTL plant under construction in Uzbekistan. Kirchner Italia Company was founded in 1952 and is one of largest manufacturers of high-tech equipment for the oil and gas chemical industry in the world. Kirchner Italia also manufactured equipment for the largest GTL plant in the world, namely Pearl GTL (Qatar). At the same time, construction works are underway intensively at the construction site of the plant in Kashkadarya region. More than 5 thousand people are working at the construction site, about 500 items of construction, special and heavy bulky equipment have been mobilized. The EPC contractor of the project is a consortium of companies Hyundai Engineering Co. Ltd., Hyundai Engineering and Construction Co. Ltd. and Enter Engineering Pte. Ltd. Project Management Consultant is the Technip FMC Company. In total, around 11 thousand items of high-tech equipment are manufactured for the GTL plant in Uzbekistan by 129 manufacturers in 24 countries.

In October 2018, another shipment of hydrogen production plant manufactured by Amec Foster Wheeler, British company was delivered to the construction site of the plant for the production of synthetic liquid fuel in Kashkadarya region. Hydrogen will be used to produce synthesis gas, which will be produced under proprietary technology of Haldor Topsoe company. Implementation of the investment project “Production of synthetic liquid fuel on the basis of purified methane of Shurtan GCC” is carried out in accordance with the decree of the President of the Republic of Uzbekistan, No. PP-2706, dd. December 29, 2016. The implementation of the project will enable to expand capacities for deep processing of natural gas, to reduce the import of hydrocarbons, to cover the domestic demand in high-quality and environmentally friendly fuel, and also to supply strategic products produced from own raw materials to the market. The feedstock of the proposed plant for the production of synthetic liquid fuel is the purified gas, i.e methane of the Shurtan Gas Chemical Complex, with the annual volume of 3.6 billion cubic meters. Contemporarily, construction activities are already actively underway at the construction site of the plant in Kashkadarya region. For today, more than 5 thousand people work at the construction site, and approximately 500 items of construction, special and heavy bulky equipment have been mobilized. Detailed design of the plant is at the completion stage, more than 95% of orders have placed, 70% of materials and process equipment have been manufactured and delivered, construction activies are finalized by more than 21%. To date, the overall progress of the turn-key contract for the construction of the plant (EPC contract) is 60%. The EPC of the project is a consortium of companies Hyundai Engineering Co. Ltd., Hyundai Engineering and Construction Co. Ltd. and Enter Engineering Pte. Ltd.

The delegation of lenders, which included representatives of the Export-Import Bank of Korea, Korean Trade and Insurance Corporation, “Gazprombank” JSC, “Eximbank” JSC and the Russian Agency for Export Credit and Investment Insurance, arrived to Tashkent to participate in the meeting. Under the project "Production of Synthetic Liquid Fuel on the basis of Purified Methane of Shurtan Gas Chemical Complex" (UzGTL) the plant meeting the most up-to-date standards will be built in Kashkadarya region of Uzbekistan. There are only few similar high-tech plants based on “GTL” or “gas-to-liquid” technology in the world, in South Africa, Malaysia and Qatar. The plant will produce annually more than 1.5 million tons of high-quality synthetic liquid fuel corresponding to the EURO 5 standard. The meeting was opened by Ulugbek Sayidov, the first Deputy Chairman of the Board of “Uzbekneftegaz” JSC with a welcoming speech. “First of all, I would like to express my sincere gratitude to our respected lenders for their interest in financing this project, as well as to all our consultants for their work. As far you know, the GTL project is a strategic project for Uzbekistan. Its implementation will serve as another step in the economic cooperation between our countries. Today, Uzbekistan sets the new goals for economic development and the demand for fuel and energy resources, especially the demand for GTL products, is growing rapidly against this background. This factor, as well as the tendency of growth in global oil prices, makes the GTL project even more attractive,” said U. Sayidov. He expressed gratitude to the Korean partners for their professional approach in the coordination and addressing various issues, noted the contribution of partners from Russia, which, understanding the importance of timely implementation of the project, expressed readiness for its advanced financing, and thanked the partners from the Chinese side, who joined in the financing of this project for the first time. “We are pleased to inform you that the government of the Uzbekistan has approved the final financing structure of the GTL project, and has set the task to complete the coordination of all issues on financing and drawdown of loans by the end of November, this year. I hope that this meeting will help to the participants to fulfill this task,” said the First Deputy Chairman of the Board of “Uzbekneftegaz” JSC in his welcoming speech. “Uzbekistan GTL” LLC and representatives of the lenders, as well as project consultants, discussed open issues on the meeting with respect to the draft Common Terms Agreement. Also, on 1 November, the members of the delegation of the lenders scheduled to visit the facilities at the construction site UzGTL in Kashkadarya region within the framework of the meeting, and to understand the construction progress of the proposed plant. It should be added, that the investment project “Production of Synthetic Liquid Fuel on the basis of Purified Methane of Shurtan GCC” (UzGTL) is implemented in accordance with the Decree of the President of the Republic of Uzbekistan No. PP-2706, dd. 29 December, 2016. The implementation of the project will allow to expand capacities for deep processing of natural gas, to reduce the import of hydrocarbons, to cover the domestic demand in high-quality and environmentally friendly fuel, and also to supply strategic products produced from own raw materials to the market. The new high-tech production will enable the oil and gas industry of Uzbekistan to head over to a new level of deep processing of hydrocarbons. According to the calculations, the project will enable to substitute annual import of oil products in the amount of up to 1.5 million tons. The feedstock of the proposed plant for the production of synthetic liquid fuel is the purified gas, i.e methane of the Shurtan Gas Chemical Complex, with the annual volume of 3.6 billion cubic meters.

Uzbekistan GTL general director Fakhritdin Abdurasulov led the visiting delegation alongside other guests and representatives from Sasol. The delegation also toured the plant to further understand the GTL process. He said: “I was delighted with the management professionalism of Oryx GTL leadership. Being one of the first large commercial GTL plants in the world, Oryx GTL left an excellent impression by means of staff knowledge, experience, safety, and plant condition. “The visit gave me an opportunity to establish useful business contacts, as well as to get a lot of new information about GTL technology and technical solutions in this process. Everything was organised at the highest level. We have plans to extend our cooperation which can give benefit to both Oryx GTL and Uzbekistan GTL, and hope that the level of relationship will grow between the two companies.” Oryx GTL chief operations officer Jacques du Toit briefed the visitors on the process of transforming natural gas to final GTL products, in addition to discussing the best ways of cooperating to benefit all sides and improving GTL technology.

The plant for production of synthetic liquid fuel from purified methane gas (gas-to-liquid process) will be based on the technology by Sasol Company. The construction of GTL plant in Kashkadarya region is ongoing quite actively. For now, 2.7 thousand specialists, builders and working personnel of contractor consortium and 300 items of construction and special equipment was mobilized to the construction site. The overall progress for implementation of the project has achieved 38%. The detailed design of OLTIN YO`L GTL plant for production of synthetic liquid fuel is done for 76% and exceeds the schedule. More than 600 highly qualified and experienced specialists and leading engineers of Uzbekneftegaz JSC, contractor’s consortium of Hyundai Engineering & Construction, Hyundai Engineering and Enter Engineering, the licensors of the technology, Sasol, Chevron, Haldor Topsoe and TechnipFMC, the Project Management Consultant (PMC) are involved into the development of project documentation and process part of the plant. The GTL plant will produce certain types of environmentally friendly, modern and globally demanded fuels by using the natural gas of Uzbekistan, which will contribute to decrease of air emissions and introduction of one of the most developed world technologies into oil and gas industries of Uzbekistan, The plant will process annually 3.6 bln cubic meters of purified methane gas from Shurtan GCC and produce GTL jet kerosene, diesel, naphta and liquified petroleum gas. Within the concept of coupled implementation of the investment projects for expansion of production capacities of Shurtan GCC, GTL nahpta and LPG produced by GTL plant will be directed to Shurtan GCC to expand the production of polymer products which will be the first gas and chemical cluster in Uzbekistan in the result. Following the state visits of the Shavkat Mirziyoyev, the President of Uzbekistan to Russia, China and Republic of Korea, the arrangements with China Development Bank on co-financing the construction of the plant have been achieved.

With experience for 50 years in hydrocarbon processing, the Company enjoys flawless reputation of work with various customers and different projects execution, including large scale GTL project (OryxGTL in Qatar). The company has a presence in 48 countries around the world and employs more than 37,000 employees. Technip is uniquely placed to provide these valuable services:

• Proven HSSE performance;
• Deep knowledge of the plant and its process design having executed the FEED scope;
• Major PMC Project Experience, including experience of directly managing Hyundai as EPC contractor;
• Close familiarity with Sasol GTL technology;
• Possesses technical knowledge, personnel resources and execution capabilities world-wide;
• Efficient work execution;
• A proven PMC execution model that produces measurable improvements in project performance;
• Proven Knowledge transfer capability to help empower client teams.

 

The Contract between Uzbekistan GTL LLC and Technip PMC Services Limited was concluded as of July 27, 2017, with the main scope to assist that Uzbekistan GTL LLC’s and its Investors interests are fully protected throughout all stages of the EPC Phase of the project. Considering experience of many years and personnel’ competence, Technip PMC Services Limited is committed to provide complete and independent Project Management services and associated services to support Uzbekistan GTL LLC in the management of the EPC contract; including both technical and commercial support. In addition, Technip PMC Services Limited is committed to support optimization of material and equipment logistics and transportation including availability of worldwide vendor inspection specialists.

Uzbekistan GTL is inspired to be in step with the times and by cooperation with Technip PMC Services Limited is seeking to find new and better ways of doing things by:

• Accelerating and integrating technology innovations to reduce complexity, standardize solutions, and improve performance;
• Delivering lower project costs and leaner operating structures that simplify decision-making, reduce timescales, and streamline execution;
• Developing integrated offerings across our markets to achieve sustainable savings.

With experience for 50 years in hydrocarbon processing, the Company enjoys flawless reputation of work with various customers and different projects execution, including large scale GTL project (OryxGTL in Qatar). The company has a presence in 48 countries around the world and employs more than 37,000 employees. Technip is uniquely placed to provide these valuable services:

• Proven HSSE performance;
• Deep knowledge of the plant and its process design having executed the FEED scope;
• Major PMC Project Experience, including experience of directly managing Hyundai as EPC contractor;
• Close familiarity with Sasol GTL technology;
• Possesses technical knowledge, personnel resources and execution capabilities world-wide;
• Efficient work execution;
• A proven PMC execution model that produces measurable improvements in project performance;
• Proven Knowledge transfer capability to help empower client teams.

The Contract between Uzbekistan GTL LLC and Technip PMC Services Limited was concluded as of July 27, 2017, with the main scope to assist that Uzbekistan GTL LLC’s and its Investors interests are fully protected throughout all stages of the EPC Phase of the project. Considering experience of many years and personnel’ competence, Technip PMC Services Limited is committed to provide complete and independent Project Management services and associated services to support Uzbekistan GTL LLC in the management of the EPC contract; including both technical and commercial support. In addition, Technip PMC Services Limited is committed to support optimization of material and equipment logistics and transportation including availability of worldwide vendor inspection specialists.

Uzbekistan GTL is inspired to be in step with the times and by cooperation with Technip PMC Services Limited is seeking to find new and better ways of doing things by:

• Accelerating and integrating technology innovations to reduce complexity, standardize solutions, and improve performance;
• Delivering lower project costs and leaner operating structures that simplify decision-making, reduce timescales, and streamline execution;
• Developing integrated offerings across our markets to achieve sustainable savings.