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LUKOIL launches first phase of Uzbekistan's Kandym GPP

6 November 2017

Russia’s LUKOIL remains key partner of Uzbekistan, a Central Asian nation which enjoys vast potential in energy sources, in developing its gas industry.

LUKOIL launched the first thread of the Kandym Gas Processing Plant (GPP) designed to process 4.05 billion cubic meters of gas a year on November 3, UzA reported.

The launch took place five months ahead of the deadline after successful completion of commission works.

The work on the construction of shift camp, the pre-plant zone, the highway system, the external power supply and water supply facilities, the collection system and the pipeline for gas export has also been completed.

At the same time, the construction of the second thread of the Kandym GPP is underway, which is planned to be completed in July 2018.

Currently, the construction of this complex involves more than 5,500 workers and more than 1,000 units of construction equipment.

The plant is designed to process hydrogen sulfide-containing natural gas with a capacity of 8.1 billion cubic meters of gas per year from the Kandym group of fields located in the Bukhara region to produce purified natural gas in the amount of 7.9 billion cubic meters, 134,400 tons of stable gas condensate, and 212,900 tons of lumpy and granulated sulfur.

Construction of the Kandym gas processing plant is being carried out as part of the Kandym-Khauzak-Shady PSA, signed in June 2004, with a validity of 35 years. Kandym group includes six gas condensate fields - Kandym, Kuvachi-Alat, Akkum, Parsankul, Khoji and Western Khoji. The agreement partners are the Lukoil, with a share of 90 percent, and Uzbekneftegaz National Holding Company, with a share of 10 percent.

Commercial production at the Hauzak site started in autumn 2007.

Lukoil is operating in Uzbekistan for implementation of two projects based on PSAs – Kandym-Hauzak-Shady and South-West Gissar. In 2018, it is planned to produce 14.7 billion cubic meters of gas from all fields within the PSA framework.

Total volume of gas produced by the company in Uzbekistan has exceeded 40 billion cubic meters. As part of the first two projects, Lukoil plans to produce up to 18 billion cubic meters of gas by 2020 and raise the volume of investments to $8 billion.

Russian company invested $6.5 billion during the whole period of the projects implementation in Uzbekistan.

In 1991-2016, total investments in the oil and gas industry were $30.7 billion, including direct investments and loans worth more than $17 billion, according to Uzbekneftegaz.

Uzbekistan has large mineral reserves, which include more than 1,800 known mineral deposits. The country’s mineral resources include petroleum, natural gas, gold, silver, uranium, molybdenum, tungsten, coal, copper, zinc and lead. Uranium, copper and gold are the country’s chief minerals.