Major Milestone Achieved For Financing Innovative Gas-Chemical Complex In Uzbekistan

Tashkent /PRNewswire/ - Italy's State Export Credit Agency (SACE) has signed a financial memorandum with Uzbekistan's largest oil company Saneg concerning an innovative methanol-to-olefin gas chemical complex (GCC MTO), that is currently under construction in the Bukhara region of Uzbekistan.

The memorandum establishes a framework for future agreements between Uzbekistani and Italian counterparts concerning additional financing and insurance provisions for the development of GCC MTO, which is owned by Saneg.

Italian companies are already deeply involved in construction of GCC MTO. The Italian branch of John Wood Group PLC provided a configuration study and FEED, while Versalis is a licensor of the project's LDPE/EVA unit.

Bakhtiyor Fazylov, Chairman of the Management Board of Saneg, noted:
"Italy is a technologically advanced nation and has demonstrated significant interest in the innovative GCC MTO project. I am confident that the financial support provided by Italy will not only serve as a strong basis for the successful implementation of our project but also mark the beginning of a new chapter in the Uzbek-Italian business partnership."

This is the second major agreement recently finalised concerning GCC MTO. On 25 May, Gas Chemical Complex MTO Central Asia LLC signed an industrial gas processing agreement with Air Products to build a methanol production facility. Known as Methanol Island, the facility would have capacity of 1.34 million tons per year, as part of the GCC MTO complex.

About GCC MTO
The MTO gas chemical complex will become the largest producer of polymer products in Central Asia with a capacity of 1100,000 tons / year.

Using world leading innovative technologies, Uzbekistan's GCC MTO complex (unlike traditional MTO facilities that use less environmental-friendly coal) is designed for deep processing of specific natural gas with a low content of valuable components into high value polymer products with a production capacity of over 1,110,000 tons per year. The company will produce:

• Polypropylene (250,000 t/y), used for the production of artificial fibers, electrical engineering and automotive components.
• Low-density polyethylene (80,000 t/g), which is a raw material for the production of pipes, insulating materials, packaging and food films and moldings.
• Ethylene vinyl acetate (100,000 t/y) used for the production of floor coverings, footwear and sports equipment.
• Polyethylene terephthalate (300,000 t/g), which can also be used for the production of containers, films and synthetic fibers.
• High density polyethylene (280,000 t/g), used for the production of pipes and fittings, barrels, canisters for fuel, freezer containers, safety helmets, furniture fittings.

The following companies are working on the MCC MTO project: John Wood Group Plc (UK and Italy), Air Products (USA), Topsoe (Denmark), Koch Industries Inc. (USA), Chemtex Global Corp. (USA), Scientific Design (USA), Versalis (Italy), Sinopec (China) and Grace Catalysts Technologies (USA).

About Saneg
Sanoat Energetika Guruhi, Saneg (Jizzakh Petroleum until November 2021) was established in 2017 with the aim of expanding the country's production capacities for the deep processing of hydrocarbon raw materials and the production of high-quality petroleum products, as well as increasing the export potential of Uzbekistan's oil and gas industry.

Saneg is Uzbekistan's largest private oil and gas company which owns the subsoil rights to 103 deposits for geological exploration and extraction, and which accounts for about 80% of oil production in the Republic of Uzbekistan. The company employs over 3,500 people. The production facilities of the company are in Karshi, Mubarek, Fergana and Andijan.