Home / Knowledge / News / Textiles / ADB grants $400 mn to Uzbek largest petrochemical plant
ADB grants $400 mn to Uzbek largest petrochemical plant
25
Jan '12
The Asian Development Bank (ADB) has approved a loan and political risk guarantee totaling up to $400 million to help build the largest-ever petrochemical plant in Uzbekistan.

The Surgil Natural Gas Chemicals Project will produce gas for commercial use and for conversion into chemical intermediates used in the plastics and textiles industries. The developer and operator, Uz-Kor Gas Chemical LLC, is a joint venture company owned by state-controlled oil and gas company National Holding Company Uzbekneftegaz, and a consortium of Republic of Korea companies, comprising Korea Stock Exchange-listed Honam Petrochemical Corporation, Korea Gas Corporation, and STX Energy, a unit of STX Corp.

“Instead of simply extracting gas and treating it for energy use, the project will also process a portion of it into chemical raw materials for exporting to plastics and textiles producers. That means Uzbekistan gets more bang for its buck out of its natural resources,” said Thomas Minnich, Senior Investment Specialist in ADB's Private Sector Operations Department “ADB's provision of a partial risk guarantee has helped draw in commercial lenders to the project and that could spur further foreign investment in this key sector.”

Uzbekistan is the second largest gas producer in the Commonwealth of Independent States behind the Russian Federation, with total reserves of 59.4 trillion cubic feet. However, the petrochemical industry in Uzbekistan is very small, meaning the country gets less benefit than it should from its abundant gas reserves. Developing the domestic petrochemical sector will diversify the country's economy, generate additional revenues, and create jobs.

The project, which is located about 1,300 kilometers from the capital Tashkent in the Karakalpakstan region, will have supply capacity of about 4.5 billion cubic meters per annum of natural gas throughout the life of the project. It will include production wells, pipelines, ethylene cracker, polymer plants, and onsite power generation.

The total project cost is about $4 billion with financing to come as well from Export Import Bank of Korea, Korea Trade Insurance Corporation, China Development Bank, National Bank of Uzbekistan, European export credit agencies and international commercial lenders. It will demonstrate the viability of large-scale domestic/foreign joint ventures and could pave the way for future foreign direct investments in Uzbekistan's private sector manufacturing industry.

ADB's participation will also help ensure that the facilities comply with internationally acceptable environmental, health and safety standards.

ADB is providing a 13-year loan of up to $125 million and a 13-year guarantee of up to $275 million which will cover certain risks on loans extended by commercial lenders to Uz-Kor Gas Chemical. The plant is expected to be operational in early 2016.

The Asian Development Bank (ADB)


Must ReadView All

Textiles | On 23rd Sep 2017

SIMA urges Centre to re-look duty drawback rates

he Southern India Mills’ Association (SIMA) has appealed to the...

Textiles | On 23rd Sep 2017

Pakistan’s textile exports up 5.81% in July-August 2017

The value of textile and garment exports from Pakistan increased by...

Apparel/Garments | On 22nd Sep 2017

Govt announces new duty drawback rates for garments

The Government of India has today announced the new duty drawback...

Interviews View All

Varinder Singh Jawanda
Trendy Bharat

Sizing and fitting issues are inherent problems for companies expanding...

Awen Delaval
Samatoa

'Natural fibres are appreciated for traditional authenticity'

Marazban F Velati
Sutlej Textiles & Industries limited

No training can be effective till the candidate believes in it.

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

September 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
74.5%
No
12.8%
Skip
12.8%

Total Votes: 47

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.7%
No
25.5%
Skip
12.8%

Total Votes: 47

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.2%
No
6.4%
Skip
6.4%

Total Votes: 47

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
70.2%
No
10.6%
Skip
19.1%

Total Votes: 47


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search