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Shurtan expansion to speed up after GTL commissioning

DOWNSTREAM CASPIAN AND CENTRAL ASIA

Shurtan expansion to speed up after GTL commissioning

Expansion at the Shurtan Gas Chemicals Complex (ShGCC) will gain pace once construction at the Oltin Yo’l gas-to-liquids plant ends, according to Uzbekneftegaz (UNG) officials.

Speaking at Downstream Caspian and Central Asia on 14 October, UNG’s gas chemicals head Alisher Bahadirov said orders had already been placed for main facilities. Source: Uzbekistan Energy Monitor

The expansion is being funded by the oil and gas giant itself, but project finance is under consideration, with talks ongoing with potential investors, Bahadirov said.

The $1.3bn ShGCC expansion will add 280,000 tonnes of polyethylene and 100,000 tonnes of polypropylene in new annual capacity.

Last week, Lummus Technology confirmed its contract award to design and supply ethylene cracking furnaces for the facility.

It will supply four proprietary Short Residence Time (SRT®) VI and VII type cracking furnaces.

Prior to the COVID-19 outbreak the project was expected to be complete by December 2021, a timeline which may have been pushed back due to delays throughout the pandemic.

Enter Engineering is the main contractor on the project, with Hyundai and McDermott also involved. 

Nexant undertook the initial marketing study for the project, while Gazprombank is lending $300m to support the expansion.

SGCC is understood to be eyeing other Central Asian markets, plus China, as the main export offtakers once the expansion is completed.

The original plant was commissioned in 2001 and is owned by a subsidiary of Uzbekneftegaz (UNG). It produces a range of products including LPG, polyethylene, sulphur, and condensate gas.

Based on the most recently-available data, the plant substantially exceeded its key production targets in the first half of 2020, according to data released by the company's parent, UNG.

Operations at the facility were not affected in the first six months of the year, it said, with "not a single shutdown" due to the COVID restrictions.

Output figures suggested that targets were achieved across the board, with gas processing volumes 10% over planned levels and condensate production 18.5% above target.

Full details are available for Premium Subscribers in our project profile.

The $3.6bn Oltin Yo’l GTL plant, which is being built adjacent to the ShGCC, is set to be commissioned next year.

Downstream Caspian and Central Asia was a one-day UNG-sponsored event that brought together some 160 speakers and attendants from across the region.

The virtual conference reviewed downstream sector in the CIS and focussed on plans and targets for Uzbekistan and Kazakhstan.

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