Uzbekistan approves Russian-Uzbek LNG venture

Jan. 3, 2008
Uzbekistan's President Islam Karimov has approved the creation of a $221.5 million joint venture for the production of LNG by Russia's Stroytransgaz and Uzbekistan's Uzbekneftegaz.

Eric Watkins
Senior Correspondent

LOS ANGELES, Jan. 3 -- Uzbekistan's President Islam Karimov has approved the creation of a $221.5 million joint venture for the production of LNG by Russia's Stroytransgaz and Uzbekistan's Uzbekneftegaz.

A spokesman for Uzbekneftegaz said the president's approval clears the way for the planned signing of an agreement between the two companies by March of this year, aiming to produce LNG at the Mubarek natural gas processing plant.

The facility will process 12 billion cu m of gas annually and produce 270,000 tonnes of LNG along with 70,000 tonnes of gas condensate.

Stroytransgaz will contribute $110 million to the project, with an additional $45.5 million coming from Uzbekneftegaz, $35.5 million from Uzbekistan's Fund for Reconstruction and Development, and $30 million from an unnamed Chinese bank.

Contact Eric Watkins at [email protected].