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Jizzakh Petroleum announces major investment

DOWNSTREAM CASPIAN AND CENTRAL ASIA

Jizzakh Petroleum announces major investment

Uzbekistan’s Jizzakh Petroleum has announced a major investment in a new state-of-the-art chemical complex in the country. Source: Rupec

Announced in May 2019 and being built in in Bukhara region, the chemical complex is claimed to be one of the largest and more advanced than others in the CIS region. It will operate using domestic feedstock and will allow natural gas monetisation via the production of export oriented and high value-added products. The estimated cost of construction is $2.8 billion.

The plant’s location was determined by the presence of competitive feedstock and energy supplies, suitable infrastructure, and proximity to key markets across Europe and Asia, consolidating the role of Uzbekistan as the energy leader in the region.

Even in these current difficult times we are happy to report progress in this unique and ambitious project. We are keen to play a key role in enabling a new carbon economy for Uzbekistan and the region as a whole by supporting innovative projects and solutions on the way to a cleaner and safer future.

Shokir Fayzullayev, General Director, JV Jizzakh Petroleum

We aspire to create a world-class chemical company making great products for society, and this project is fully aligned with our vision. Our approach is not limited to our immediate operations, but we take the entire supply chain and the interests of all stakeholders into account. We look forward to working closely with all our partners and consultants to implement this visionary state-of-the-art complex that will contribute to our economy and to the people of Uzbekistan and Central Asia at large.

Shokir Fayzullayev, General Director, JV Jizzakh Petroleum

Continuous work on the project has been carried out and the first, preparatory stage is now completed, despite the challenges of the Covid-19 pandemic. Consulting and technical partners including IHS Markit, Nexant, and Amec Foster Wheeler (Wood) have concluded marketing analysis and feasibility studies on the project. The final stage of licensor selection is currently underway and once completed the next stage of the project, FEED, will begin.

Following a screening study, IHS Markit selected 18 end products for the next stage from 47 olefin derivatives. Nexant then completed a detailed marketing study for the 18 product types, from which low-density polyethylene (LDPE), ethylene-vinyl acetate (EVA), polyethylene terephthalate (PET), polypropylene (PP) were chosen for planned production.

These results became the basis for drawing up various options for the basic configuration of the future plant. AFW (Wood) conducted research into the project configuration and selected the optimal option for the configuration of the future gas chemical complex.

When completed, a new 500,000 tons state-of-the-art olefins plant is expected to process 1.5bcm of natural gas per annum and manufacture high-quality polymers used in many sectors of the worldwide economy.

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