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DOWNSTREAM CASPIAN AND CENTRAL ASIA

4-5 December   |   Almaty, Kazakhstan

LARGEST PROJECTS OF OIL REFINING AND PETROCHEMICALS IN THE COUNTRIES OF CASPIAN AND CENTRAL ASIA

At present one of the main strategic tasks of the oil and gas sector in almost all the states of the Caspian region and Central Asia is to avoid the export and raw materials orientation, as well as to increase the level and quality of raw materials processing and the general transition to an innovative economy. As a result, by possessing the richest resources of hydrocarbon raw materials, the countries of the region are actively developing and investing tens of billions of dollars in investment projects for the construction and modernization of new oil refining and petrochemical facilities. There are just some of the current and planned projects in the region, represented below.

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Kazakhstan

Revamp of three refineries, construction of gas-to-chemicals plant and more...

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Uzbekistan

Construction of a new refinery and GTL-plant, new gas processing and gas-to-chemicals production

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Azerbaijan

Large scale modernisation of oil refining and petrochemical industry of the country

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Turkmenistan

Multi billion investments in number of large gas-to-chemicals projects

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Kyrgyzstan

Further development of oil refining industry

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Tajikistan

Construction and launch of new oil refining facilities

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Mongolia

Further development of oil refining industry

AZERBAIJAN

The oil industry of Azerbaijan, the country that first started oil production, has come a long way over its 150-year history. The development of downstream is now the top priority for the energy sector.

Construction of SOCAR GPC

SOCAR GPC, the new gas processing and petrochemical complex in Azerbaijan, is scheduled for commissioning in Q1 of 2022. Construction of a $4.2 bn project will start in late 2018-early 2019 on a 305-hectares site near the village of Sangachaly.
The processing capacity is estimated at 10 BCM per year. The complex will include a steam cracker with a capacity of 570 KTY of ethylene and 120 KTY of propylene, a LLDPE / HDPE polymerization unit with a capacity of about 570 KTY as well as associated infrastructure.

Modernization of Baku Oil Refinery

Oil refining is in Azerbaijan is going through a period of major modernization and transformation. Baku refinery scheduled a shutdown as early as in autumn of 2018 to put into operation bitumen and liquefied gas production units. During the next stage new diesel production facilities will be constructed through 2020. In the final phase new facilities for production of Euro-5 diesel and gasoline are scheduled to be commissioned by early 2021. The total investment in the modernization of Baku refinery is estimated at $2.2 billion, with 14 new facilities to be built and four current units to be upgraded over the next few years.

SOCAR is planning to finish upgrading Baku refinery by the end of 2021. The primary processing capacity is expected to increase from 6 to 7.5 MTY as a result.

Modernization of Azerikimya

The work on upgrading the facilities and building new ones will continue throughout 2018-2019. As Orkhan Jafarov, Deputy General Director for Investment and Business Development, stated before, once the project is completed Azerikimya will be re-commissioned in Q1 of 2020. After the modernization Azerikimya will start supplies of olefins to SOCAR Polymer’s new PE and PP production facilities in Sumgayit. Previously, the company estimated the investment into pyrolysis upgrade at $300 m.

The ethylene-polyethylene plant was launched in January 1988 as a petrochemical unit at Sumgait synthetic rubber plant, with an annual production capacity of 300 KT of ethylene and 138 KT of LDPE.

Construction of SOCAR Polymer

SOCAR Polymer is a world-class project, first of its kind and scale to be implemented in the petrochemical industry of Azerbaijan over the past 40 years.

The total cost of SOCAR Polymer is 750 m USD. The production facilities are under construction on the territory of the Sumgayit Chemical Industrial Park (SCIP).

During the first stage, the production capacity will reach 120 KTY of HDPE and 184 KTY of PP. According to Farid Jafarov, General Manager of SOCAR Polymer, the commissioning of HDPE plant is tentatively scheduled for August-September of 2018. The total capacity can be expected to increase to 570 KTY by 2021.

First of its kind in Azerbaijan, the PP plant in Sumgait will boost the petrochemical industry and put the country on market of plastics production.

UZBEKISTAN

Experts believe that Uzbekistan holds one third of all mineral reserves of Central Asia and is ranked eighth in terms of gas production globally.

One of Uzbekistan’s strategic goals is to assure own production of marketable chemical products with high added value. According to UzbekNefteGaz, “A programme worth 30.4 bn USD is now under way to increase the output of advanced refined export-orientated products for 2016-2020.”

Construction of Oil Refinery in the Jizzakh Region

The launch of Jizzakh refinery will mark an important step in the development of the industry in Uzbekistan. Once completed, the refining complex will process 5 MTY of hydrocarbons, including from Russia and Kazakhstan.

According to preliminary estimates, the complex will produce 3.7 MTY of motor fuel, over 700 KTY of aviation kerosene and 300 KTY of other finished products.

This major project is scheduled for completion by 2022 and will approximately be worth $2.2 billion. A number of Russian and European financial institutions are considering investment opportunities.

Uzbekistan GTL Project

The construction of a GTL plant that will produce synthetic liquid fuels began in early 2017 in the Kashkadarya region in the south of Uzbekistan.

According to the approved results of the feasibility study, the plant will process 3 BCM of gas and produce approximately 1.5 MT of diesel, kerosene, naphtha and LPG for both domestic consumption and export. The GTL plant was previously reported to cost approx. $3.6 bn.

Shurtan Complex Capacity Expansion

NHC “Uzbekneftegaz” is currently working on the implementation of the concept of an investment project to expand the production capacity of the Shurtan gas chemical complex.

According to UzbekNefteGaz, once completed, the plant capacity for polymer production will be quadrupled from today’s 125 KT to 500 KT. New production units for PP (100 KTY) as well as pyrolysis distillates and oils (50 PTY) will be put in operation. The project includes processing of valuable synthetic naphtha and the development of new types of PE and PP.

Using the synthetic naphtha from GTL in production of olefins and new polymer grades is considered the optimal scenario.

As per the management, about $400m will be invested in the project that is due for completion in Q4 of 2020.

Construction of ``25 Years of Independence`` Gas Chemical Complex

The development of the “25 Years of Independence” gas field in the southern Surkhandarya region of Uzbekistan continues with the drilling of confirmation wells. Under the agreement signed in April of 2017, the detailed exploration and development of the gas field will be complemented with construction of a gas chemical complex. Despite the high sulphur content and HTR (hard-to-recover) classification, this investment project tops the list of plans for the Uzbekistan programme of increasing the output of advanced refined products for 2016-2020. The total reserves of the “25 Years of Independence” gas field are estimated at over 100 BCM of natural gas.

TURKMENISTAN

Rich in energy resources, Turkmenistan ranks fourth in the world in terms of natural gas reserves and billions are invested to transform the country from a commodity exporter to an exporter of finished products. The development of the gas chemical industry will be considerably enhanced in the next 10 years.

Kiyanly Gas Chemical Complex

Kiyanly complex, to be located in Balkan province of Turkmenistan, is designed to process 5 BCM of natural gas, crack ethane and produce 386 KTY of HDPE and 81 KTY of PP.

This project is focussed, in particular, on green technology and reducing the environmental footprint.

Bagadzha Gas Chemical Complex

Plans are in place to revamp the natural gas conversion plant and liquefaction facility at Bagadzha in Lebap province, with subsequent construction of a gas chemical complex with an annual capacity of 80 KT of butadiene-styrene rubber and 45 KT of polystyrene. Under the Gas Master Plan of Turkmenistan, Türkmengaz is due to complete the feasibility study for the project in summer of 2018.

Gas Chemical Complex in Central Karakum

There are plans to implement a major investment project at the fields of Central Karakum near Yylanly gas compressor station in Dashoguz province. The project involves construction of a plant to process 2 BCM of natural gas and to liquefy 70 KT of gas per year. During the second phase facilities for producing 200 KTY of LDPE are going to be put in operation.

Development of Further Processing and Chemical Industry

As part of the further development program of Turkmenistan’s oil and gas sector, a project of construction of methyldiethanolamine (MDEA) plant with a capacity of 4 KTY of ethylene gas and 2 KTY of methanol is being designed. Currently MDEA is heavily imported.

Another plant is designed to produce 15 KTY of formaldehyde from urea and methanol supplied by plants of Turkmenchemistry in Mary province.

Modernization of Turkmenbashy Refinery Complex

The Ministry of Oil and Gas of Turkmenistan previously said that modernizing Turkmenbashy refinery complex will increase the refining output to 10-10.5 MTY with a yield improved up to 95 per cent.

New facilities are being constructed alongside an upgrade of the existing units. According to recent information, a feasibility study for construction of a plant to produce commercial benzene which is used in polystyrene and rubber production. The project also included plans to put in place gasoline treatment and crude distillation units. Benzene separation units will enable production of Euro-5 gasolines and high-quality synthetic oils.

The immediate future will also see construction of hydrotreatment units for diesel and gasoline, delayed cokers and catalytic crackers for production of hydrogen.

Construction of Fertilizer Plant in Garabogaz

The project involving contractors from the USA, Italy, the Netherlands and Japan is at the commissioning stage of the process – the ancillary and process equipment is already installed for conversion of natural gas into ammonia and urea. The urea plant is designed to have a production of capacity of 1.2 MTY.

The total investment into the project owned by Turkmenchemistry is estimated to reach $1.6 bn.

The immediate future will also see construction of hydrotreatment units for diesel and gasoline, delayed cokers and catalytic crackers for production of hydrogen.

KAZAKHSTAN

Kazakhstan is one of the leading economic powerhouses of the Central Asian region. The Ministry of Energy of the Republic of Kazakhstan has projected a significant increase in refining volumes – to 16 MT, which is 7.4 percent more than in 2017. The immense potential of the sector is underpinned by major oil and gas reserves as well as a large domestic fuel market. With three refineries already in operation in Kazakhstan, plans for constructing a fourth one have been announced. Large-capacity petrochemical plants and creation of a single petchem cluster are also envisaged.

Construction of a Deep Oil Refining Complex at Atyrau Oil Refinery (DORC)

The deep oil refining complex will comprise 12 process units and recent data suggest the commissioning already began in summer of 2018.

The processing of low-value residual petroleum products will enable the Atyrau refinery to produce more high-octane gasoline, aviation and cleaner diesel fuels of Grades 4 and 5. The DORC includes LPG sweetening, oligomerization, naphtha hydrotreatment, cat-cracked gasoline, gas oil, hydrogen production, isomerization units etc.

After the DORC is launched, the environmental conditions can be expected to improve thanks to the production of gasoline with lower sulphur, benzene and aromatics. It should be noted that this complex brownfield construction has been completed without business interruptions.

Modernization of Pavlodar Oil Chemistry Refinery

The modernization of the refinery, involving the construction of new isomerization and naphtha splitter units, a set of sulphur recovery units as well as utilities and offsites (U&O), was completed in November of 2017. The LK-6u (Primary Oil Distillation) and KT-1 (Fuel Oil Advanced Processing) complexes have also been revamped.

Pavlodar Oil Chemistry Refinery is one of the largest and most technologically advanced refineries of Kazakhstan.

It refines primarily West Siberian crudes and has a capacity of 5.1 MTY.

Modernization and Reconstruction of Shymkent Oil Refinery

Shymkent oil refinery (PetroKazakhstan group of companies) was launched in 1985 and is one of the three major refineries in Kazakhstan with a capacity of 5.25 MTY.

PetroKazakhstan is jointly managed on a parity basis by KazMunayGas, Kazakhstan’s national operator, and China National Petroleum Corporation (CNPC). The refinery processes crude mainly from Kumkoil field in Kazakhstan.

In May of 2018 a part of the equipment was replaced and tested, and the residual fluid catalytic cracker (RFCC) of 2 MTY was integrated in the existing process chain. The new cracker will allow for production of high-octane components of motor fuel.

As a result of the modernization to be completed in Q3 of 2018, Shymkent oil refinery will start producing Euro-4 and Euro-5 gasoline and diesel fuels.

Construction of the first-ever Integrated Gas Chemical Complex

The integrated gas chemical complex project lays the foundations for the development of a world-class petrochemical industry in Kazakhstan. The complex will include a 500 KTY PP plant (Stage 1) and 1.25 MTY PE and butadiene plant (Stage 2).

The United Chemical Company (KZ), Mubadala (UAE) and Borealis (AUT) signed a Joint Development Agreement in March of 2018 to set up a local JV for Stage 2 of the project. According to recent information, the feasibility study is due to be completed by the end of 2018.

Stage 2 of the construction will be operated by KLPE. As per Magzum Mirzagaliev, Vice Minister of Energy of Kazakhstan, de-oiling gas separators will be installed at the plant.

Tengizchevroil will supply feedstock for PE production.

The Ministry of Energy suggests that the investment will total about $11.1 billion, $4.6 billion for Stage 1 and $6.5 billion for Stage 2. This complex will be at the heart of a network of similar complexes to be developed in the respective free economic zone where other sites are going to be built, including for production of aromatics etc.

Methanol and Terephthalic Acid Project

Speaking at the CIS Petrochemical conference in 2016, Raushan Sarmurzina, Advisor to the Chairman of the Board, Kazakhstan Petrochemical Industries, said methanol and terephthalic acid production facilities could be launched in Kazakhstan.

“The United Chemical Company is considering the construction of a methanol production plant, and the project is currently under discussion,” she said.

At the same time, the terephthalic acid (feedstock for polyethylene terephthalate) project is being developed. Paraxylene will be supplied by Atyrau Oil Refinery, where an aromatics production unit was put in operation in 2015.

According to Ms Sarmurzina, the project is now evaluated and approved, and the construction site has been identified.

Construction of the Fourth Refinery

Published in early 2018, the forecast by the Ministry of Energy of Kazakhstan predicts fuel shortages by 2021 when Kazakhstan is no longer able to sustain the domestic demand for gasoline. A decision was made to build the fourth refinery to avoid such a scenario.

The project has been under the personal supervision of the President of Kazakhstan, who in February of 2018 urged a faster decision making on construction. With KazMunayGas as project owner, a working group is set up to prepare the pre-feasibility study. The investors have already been identified, while the timeline and site will be determined by autumn of 2018. This new plant will increase the refining volumes in Kazakhstan by 1.1 MT. According to Kanat Bozumbaev, Minister of Energy of Kazakhstan, the cumulative production capacity is estimated at 6 MTY.

KYRGYZSTAN

The Kyrgyz Republic is rich in natural resources but has a negligible oil and gas production. A number of refining construction and modernization projects are, however, being implemented.

The Kyrgyz government needs to meet the challenge of uninterrupted and adequate supplies of crude to its refineries. Once the challenge is addressed, there will be enough fuel for both domestic consumption and exports to some of the neighbouring countries.

Refining Modernization in Kyrgyzstan

Kyrgyzstan’s accession to the Eurasian Economic Union has resulted in multiple changes in the economy. The EEU regulations require high quality of Euro-4 and Euro-5 fuels, hence the need for modernization of the existing refining equipment which can also improve refining yields. The integration into the EEU and market fluctuations will boost the development of oil refining industry in Kyrgyzstan.

Within the immediate development strategy of Kyrgyz Petroleum Company (KPC) that owns a refinery in the south of the country, an upgrade is planned, involving re-refining of vacuum residue with deeper yields and of naphtha for higher octane numbers. The modernization is scheduled for completion by early 2021 and KPS is now actively seeking funding for the project.

The KPC refinery is designed to process 500 KTY of crude as well as lesser volumes of other feedstock such as gas condensate, distillates, and off-spec products.

MONGOLIA

Rich in energy resources, Mongolia has a long history of their exploitation. There are currently but two small-tonnage crude processing facilities in Mongolia and experts believe that a proper refinery will accelerate the economic development and consolidate the country’s independent position in the market.

Construction of Refinery in Dornogov Province

The plans for the first Mongolian refinery go back as far as 2014.

The feasibility study is completed and construction was officially launched on a site in Dornogov province in the presence of Ukhnaagiin Khürelsükh, Prime Minister of Mongolia, on June 22, 2018. The total project cost is estimated at $1 bn to be granted by India. The construction of the refinery would increase the GDP by 10%.

With construction expected to finish by 2022, the refinery will produce 560 KTY of gasoline, 670 KTY of diesel and 107 KTY of liquefied gas. The total designed capacity will reach 1.5 MTY of crude.

Kazakhstan is one of the undoubted leaders of the Central Asian region, traditionally considered a bulwark of economic and social stability.

No other industry is spoken of in this country as often as about oil refining and petrochemical. The huge potential of the sector is due to a number of prerequisites for development and is reflected in the active program of modernization of the three refineries and plans for the construction of large-capacity petrochemical facilities, as well as the creation of a single cluster.

Construction of a complex for the production of aromatic hydrocarbons at the Atyrau Refinery “(CPA)

The project completed the construction of a catalytic reformer with continuous catalyst regeneration and a benzene recovery unit, as well as the “Paramax BTX” technology unit licensed by the French company Axens (xylenes prefractionation section, xylene isomerization section, toluene transalkylation section, raffinate separation section).

The capacity of CPA: 133 thousand tons of benzene and 496 thousand tons of paraxylene per year. Complex facilities can also operate in the mode of production of a high-octane component of gasoline.

Currently, the CPA is working on a fuel option with increasing production of high-octane gasoline, because of the need to supply gasoline to the domestic market.

The construction of a complex of deep oil refining at the Atyrau refinery (KGPN)

KGPN complex provides for the construction of 12 separate process units. The basic setting is a catalytic cracking unit, intended to transform (conversion) of atmospheric distillation residues, heavy gas oil, vacuum gas oil and heavy gas oil delayed coker to more valuable oil products, such as liquefied petroleum gas, gasoline and light gas oil cracking. The processing of low-value residual oil products will allow ANPZ to increase production of high-octane gasoline, aviation and diesel fuels. Also in KGPN desulfurization plant includes LPG, oligomerization, hydrotreating naphtha, catalytic cracking gasoline, gas oil, hydrogen production, isomerization, etc.

Modernization of «PAVLODAR OIL CHEMISTRY REFINERY» LLP

Pavlodar Oil Chemistry Refinery plant is one of the largest and modern in technology refineries in Kazakhstan.

The plant is technologically focused on processing West Siberian oil. The oil processing capacity is 5.1 million tons per year.

Within the framework of the plant modernization project, new isomerizating and splitter installations of naphtha, a block of sulfur production units, and facilities of the general factory will be built. Also, the existing facilities of the LK-6u and KT-1 complexes will be reconstructed.

Modernization and reconstruction of Shymkent oil refinery

Oil refinery plant PetroKazakhstan Oil Products LLP was launched in 1985 and is one of three large oil refineries in Kazakhstan with a capacity of 5.25 million tons per year.

Management of PKOP is carried out on a parity basis by the National Company “KazMunayGas” in the person of JSC “KazMunayGas – PM” and Chinese National Oil Corporation CNPC. The processed raw materials are mainly Kazakh oil from Kumkol field.

In 2015, a diesel fuel hydrotreating unit and a sulfur production facility were put into operation. The installation of isomerization completed the placement of orders for the manufacture of equipment, the delivery and installation of technological equipment, installation of metal structures and process pipelines. Development of working documentation, placing orders for equipment and materials; excavation work is under way, the foundation of equipment.

Construction of the first integrated gas chemical complex

At present, UCC is implementing the project of construction of an integrated gas chemical complex in Atyrau region, which is the starting and basic event for the creation of world-class petrochemical plants in Kazakhstan and envisages the production of PP and PE with a capacity of 500,000 tons and 800,000 tons per year, respectively.

Investments, according to the Ministry of Energy, will amount to about $ 2.5 billion. In early 2016, the State Development Bank of China (SDBC) approved a loan for the construction of polypropylene production in the amount of $ 2 billion. The loan will be 100% financed by the EPC contract signed in December 2015 with the Chinese CNCEC for $ 1.795 billion (excluding VAT). The rest of the financing will be provided at the expense of the organizers of the project.

At the second stage of creating a gas chemical complex, polyethylene and butadiene production will be put into operation. The investment is estimated at $ 4.15 billion. The operator of the second phase of the construction of the complex is JV LLP KLPE, which on an equal footing was controlled by LG Chem and Kazakhstan’s LLP United Chemical Company. In early 2015, LG Chem decided to withdraw from the company’s share capital. “United Chemical Company” continues to search for a strategic partner.

This complex will be the main production link for other interconnected complexes, the construction of which will be carried out in the FEZ and on the basis of which it is planned to organize several other productions, including the production of aromatic compounds and other products.

Project for the production of methanol and terephthalic acid

At the last conference “Petrochemicals of Russia and the CIS”, Raushan Sarmurzina, advisor to the Chairman of the Board of Kazakhstan Petrochemical Industries reported that methanol and terephthalic acid production could be launched in Kazakhstan.

The United Chemical Company is considering the possibility of building methanol production, the project is under discussion, “she said.

In parallel, work is under way on a project for the production of terephthalic acid, a raw material for polyethylene terephthalate. Paraxylene will be supplied by Atyrau Oil Refinery, which launched an aromatic hydrocarbon production facility in 2015.

According to R. Sarmurzina, the project passed the necessary expertise, a site for new construction was determined.

The oil industry of Azerbaijan, the oldest oil country of the world, has gone a long way of development for its 150-year history. The development of petrochemicals and oil refining is a key priority for the republic’s oil and gas sector.

Construction of SOCAR GPC petrochemical complex

SOCAR GPC plans to commission a new petrochemical and gas processing complex in Azerbaijan in the first quarter of 2022. The total cost of the project is estimated at 4 billion.

The capacity of the complex for gas processing will be about 10 billion cubic meters per year. The enterprise will also include a steam cracker with a capacity of 570,000 tons of ethylene and 120,000 tons of propylene per year, a LLDPE / HDPE polymerization unit with a capacity of about 570,000 tons per year of high density polyethylene and linear low density polyethylene and other related infrastructure.

Modernization of Baku Refinery

Today, the oil refining complex of Azerbaijan is undergoing a period of modernization and significant changes. Over the next few years, the BNPZ plans to build twelve new facilities and reconstruct four existing ones. Investments for the modernization of BNPZ are estimated at about $ 1.5 billion. In particular, work will be carried out to increase the capacity of catalytic cracking units and primary oil refining.

Earlier it was reported that SOCAR plans to complete the reconstruction and modernization of BNPZ by the end of 2020.

Modernization of PA “Azerkimiya”

In 2017, more than 150 million euros will be spent on the modernization of enterprises belonging to Azerkimiya Production Association of the State Oil Company of Azerbaijan (SOCAR). Earlier, the company estimated investments in the modernization of pyrolysis of the enterprise at $ 300 million.

The project assumes expansion of capacities at the expense of start of new and reconstruction of operating installations. The works will be carried out in three stages within five years and will be completed, as the Director General of the “Azerkimiya” Mukhtar Babayev noted earlier, by 2021. Upon their completion, Azerkimiya will be able to provide new polyethylene and polypropylene plants with olefins, which it plans to create SOCAR Polymer in Sumgayit.

The Ethylene-Polyethylene plant was commissioned in January 1988 as a petrochemical complex at the Sumgait Synthetic Rubber Plant. The annual production capacity is 300 thousand tons of ethylene and 138 thousand tons of high-pressure polyethylene.

Construction of SOCAR Polymer

SOCAR Polymer, an international project, the first project of its kind and scale in the petrochemical industry of Azerbaijan, implemented over the past 40 years.

The total cost of the SOCAR Polymer project is $ 750 million. The project is being implemented in the Sumgait Chemical Industrial Park.

At the first stage, the production capacity will be 120,000 tons of polyethylene and 184,000 tons of polypropylene. By 2021, the total capacity can be 570 thousand tons of products.

The Sumgayit polypropylene (PP) plant will be the first similar project implemented in Azerbaijan, which will ensure the growth of the petrochemical industry in the country and will allow it to occupy a niche in the plastics production market.

Construction of carbamide plant in Sumgait

The plant will produce 650-660 thousand tons of carbamide per year. Earlier the company informed that all works are planned to be completed and start-up and adjustment works at the plant by the end of 2017 with putting into operation in 2018.

It is estimated that the cost of the construction project will be about 498 million euros. To operate the carbamide plant in full power it will take 1.5 million cubic meters of gas per day.

According to expert estimates, one third of all mineral resources in Central Asia are concentrated in Uzbekistan, and the country takes the eighth place in the world for gas production.

Own production of high-liquid chemical products with high added value is one of the main strategic tasks of the republic. According to the materials of the holding, Uzbekistan by 2021 plans to implement oil and gas projects in the “downstream” sector with a total value of more than $ 30 billion.

Construction of an oil refinery complex in the Jizzakh region

The launch of the Jizzakh refinery will be an important step in the further development of the industry of Uzbekistan. The complex will process 5 million tons of hydrocarbon raw materials a year, including from Russia and Kazakhstan.

According to preliminary calculations, the complex will annually produce more than 3.7 million tons of motor fuel, more than 700,000 tons of aviation kerosene and 300,000 tons of associated petroleum products.

Approximate cost of the complex is estimated at $ 2.2 billion. The project is planned to be completed by 2022.

Construction of Kandym Gas Processing Plant

The project envisages the construction of a gas processing complex with a capacity of 8.1 billion cubic meters of gas per year, the creation of a natural gas gathering system that will combine 114 production wells, 11 cluster sites and 4 collection points.

Earlier Lukoil CEO Vagit Alekperov also reported that the company could make a decision on further gas redistribution in Uzbekistan after 2022.

This complex will become one of the largest in Central Asia. Investments for the Kandym group development project will exceed 4.5 billion dollars.

Implementation of the project Uzbekistan GTL

In early 2017, the company began construction of a GTL-plant for the production of synthetic liquid fuel. In accordance with the approved feasibility study of the project, the plant will process 3.6 billion cubic meters of gas and produce about 1.5 million tons of diesel fuel, kerosene, naphtha and liquefied petroleum gas for sale on the domestic market and for export. Earlier it was reported that the cost of the GTL plant would be about $ 4 billion.

Expansion of capacities of Shurtan MCC

NHC “Uzbekneftegaz” is currently working on the implementation of the concept of an investment project to expand the production capacity of the Shurtan gas chemical complex.

According to the company, with the implementation of the project, the capacity of the plant for the production of polymers will increase from the current 125,000 tons to 500,000 tons, or 4 times. The project provides for the processing of valuable raw materials – synthetic naphtha and the development of new types of polyethylene and polypropylene

The proposed solution for the direction of synthetic naphtha GTL for the production of olefins with the subsequent production of new grades of polymers will allow to ensure its most optimal use.

The planned investments, according to the company’s management, will amount to about $ 400 million.

Rich in energy resources, the state ranks fourth in the world in terms of natural gas reserves. Multibillion investments are aimed at transforming Turkmenistan from an exporter of raw materials to an exporter of finished products. In the next 10 years, the country will significantly strengthen the development of the gas chemical industry.

Gas chemical complex in Kiyanly

It is planned to build a new gas chemical complex in Turkmenistan to produce polypropylene, polyethylene and a number of other products. This complex is designed to process 2 billion cubic meters of natural gas and 117,000 tons of sodium chloride.

It was noted that this major investment project is envisaged to be implemented jointly with foreign partners. At present, proposals received from participants of the international tender are being analyzed.

Gas chemical complex based on Bagadzha field

Within the framework of the project, it is planned to reconstruct a natural gas processing unit and the production of liquefied gas at Bagadja field in the Lebap province and build a gas chemical complex with a capacity of 80,000 tons of butadiene-styrene rubber and 45,000 tons of polystyrene per year on this basis.

Gas-chemical complex at the fields of Central Karakum

A major investment project is proposed to be implemented at the fields of Central Karakum, located near the gas condensing unit Yylanly in the Dashoguz velayat. Within its framework, it is planned to build a plant where 2 billion cubic meters of natural gas will be processed and 70,000 tons of liquefied gas will be produced annually. The second phase of the facilities of this plant is designed for the production of 200 thousand tons of low-density polyethylene per year.

Development of further redistribution and chemical production

As part of the program for the further development of Turkmenistan’s oil and gas sector, it is planned to build a facility for the production of methyldiethanolamine (MDEA) by processing 4,000 tons of ethylene gas and 2,000 tons of methanol per year. At present, this chemical products are imported in large quantities from abroad to our country.Another plant is designed to produce 15 thousand tons of formaldehyde per year, which will be made from urea and methanol produced by the enterprises of the State Concern “Turkmenkhimiya” located in Mariyskii Velayat.

Modernization of the Turkmenbashi oil refinery

The Ministry of Oil and Gas of Turkmenistan previously reported that the modernization of the Turkmenbashi complex of oil refineries (TNKPZ) will increase oil refining up to 10-10.5 million tons per year, and the depth of processing of hydrocarbon raw materials – up to 95 percent.

At the refinery, new technological capacities are being constructed, as well as the reconstruction of existing facilities.

Among the plans planned for the near future are the construction projects at the TKNPZ of a number of facilities, including the cleaning of diesel by hydrogen and the separation of sulfur from gasoline, delayed coking plants and catalytic cracking that produce hydrogen with hydrogen.

Along with this, we study the technical and economic feasibility of organizing the production of benzene, which is necessary for the production of polystyrene and rubbers. The construction of benzene separation facilities will allow Turkmen petrochemists to fully switch to the production of gasoline that meets the Euro-5 standards and to establish high-quality synthetic oils.

The Kyrgyz Republic is a country rich in natural resources, but with much less oil and gas production, nevertheless, it is implementing a number of projects on the construction and modernization of oil refining capacities.

The government of the Kyrgyz Republic now faces the task of solving the problem of uninterrupted supply of its refineries with raw materials in the required quantities. The solution of this problem will allow not only to provide fuel for the republic’s domestic needs, but also to arrange its export to a number of neighboring countries.

Modernization of the Kyrgyz oil refining sector

The entry of Kyrgyzstan into the Eurasian Economic Union has caused multiple changes in the country’s economy. The regulations of the EEU presuppose a high quality of Euro-4 and Euro-5 fuels, which necessitates the modernization of existing equipment in the country’s plants, which will also increase the depth of processing of raw materials. Integration into the Eurasian Economic Union and external conjuncture changes will give an additional impetus to the development of the oil refining industry in Kyrgyzstan.

Specialists of the Kyrgyz Petroleum Company, which owns a refinery in the south of the country, have developed a strategy of organizational and technical development of the company for the near future, within the framework of which it is planned to modernize the plant with the installation of secondary oil processing processes with an increase in the depth of selection, as well as the secondary processing of naphtha to increase the octane number.

The refinery (oil refinery) KPC CJSC was designed to process 500,000 tons of crude oil per year and a slightly smaller volume of alternative raw materials, such as gas condensate, distillates, off-grade petroleum products.