$3.4 BLN GAS CHEMISTRY COMPLEX INAUGURATED IN TURKMENISTAN
Turkmenistan inaugurated a petrochemical plant as the Central Asian state seeks to both obtain greater value from natural gas and reduce its reliance on exporting it to China and Iran.
This huge investment project worth more than $3.4 bln has been implemented by Turkmengaz, the Turkmenistan state gas company, alongside a consortium that includes South Korean firms LG International Corporation, Hyundai Engineering Corp. Ltd and Japanese company TOYO Engineering, and was financed by the Japan Bank for International Cooperation. The trilateral contract was signed during the 2013 official visit of Turkmen president Gurbanguly Berdimuhamedow to Japan.
The plant should produce 386,000 tons of polyethylene and more than 81,000 tons of polypropylene – both used to make plastic – by processing 5 billion cubic meters of gas per year, according to fuel and energy chief Myratgeldi Meredov.
President Gurbanguly Berdimuhamedow, who participated in the opening ceremony in Kiyanly, on the coast of the Caspian Sea, said it is a part of the country’s “extensive plans to diversify the Turkmen energy complex, to increase the economy’s export potential by launching production of gas and chemical products that are in demand on the global markets.”
The plant became the first facility in Turkmenistan to produce high-density polyethylene. It will include a 386,000 MTA line of High-Density Polyethylene (HDPE) using Innovene™ S technology alongside a 50,000 MTA INEOS Black Compounding line. This is the first Innovene™ S license awarded to INEOS Technologies in Central Asia.
Earlier Peter Williams, CEO of INEOS Technologies, commented: “INEOS is very pleased to support the development of the petrochemical industry in Turkmenistan with Turkmengas and Hyundai Engineering Co. Ltd. and look forward to working with both companies to ensure the successful start-up of this world-scale petrochemical complex on the Caspian Sea.”
Turkmenistan sits on the world’s fourth largest gas reserves. The chemicals produced at the complex in Kiyanly will be exported to China, India, Turkey, Europe and other Central Asian countries via a new naval port.
The construction project of the plant received a special award from TXF as one of the 10 best 2014 projects in Europe and Eurasia financed by export credit agencies.