Uzbekistan lets contract for refinery in Jizzakh region

Uzbekistan has let a contract to Enter Engineering Pte. Ltd. of Russia to build its previously announced 5 million-tonne/year grassroots refinery in the former Soviet state’s eastern Jizzakh region.

Uzbekistan has let a contract to Enter Engineering Pte. Ltd. of Russia to build its previously announced 5 million-tonne/year grassroots refinery in the former Soviet state’s eastern Jizzakh region (OGJ Online, May 1, 2017).

As general contractor, Enter Engineering will work alongside partners Amec Foster Wheeler PLC of the UK and South Korea’s Hyundai Engineering Co. Ltd. on construction of the refinery, which will be operated by recently formed Jizzakh Petroleum JV LLC, state-run National Holding Co. Uzbekneftegaz said.

Financial details of the contract, however, were not disclosed.

The modern refining complex comes as part of Uzbekistan’s 2017-21 Action Strategy development plan, the goals of which include achieving national fuel-energy independence as well as increasing the country’s export potential.

Once completed, the refinery will produce 3.7 million tpy of motor fuel conforming to Euro 5-quality specifications, as well as 700,000 tpy of aviation fuel and 300,000 tpy of other finished products, NHC Uzbekneftegaz said.

As part of cooperative framework agreements in the oil and gas sector Uzbekistan previously entered with Russia and Kazakhstan, the refinery will receive feedstock from Russian and Kazakhstani fields via a proposed 100-km extension line that is to be added to the Omsk-Pavlodar-Shymkent pipeline system, NHC Uzbekneftegaz said.

Kazakhstan’s state-owned JSC National Co. KazMunaiGas (KMG) also has pledged technical support to Uzbekneftegaz on modernization projects at subsidiary Uzneftmahsulot AK’s existing refineries, as well as review an opportunity to render technical assistance in building the refinery.

NHC Uzbeknefegaz additionally has confirmed its Kazakhstani partners will reconstruct an unidentified 168-km pipeline—including new construction of pumping stations and associated technical installations—to accommodate the crude supply agreement for the Jizzakh refinery.

Uzbekistan has yet to disclose a definitive startup date for the planned $2.2-billion complex.

Contact Robert Brelsford at rbrelsford@ogjonline.com.

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