South Korean companies LG International and Hyundai Engineering Co. LTD, which are actively working in the Turkmen market, have received new orders worth $4 bln in the gas and chemical industry, a source close to talks told Trend.
This government order was registered during the South Korean President Park Geun-hye’s official visit to Ashgabat.
Earlier on June 20, Park Geun-hye arrived in Turkmenistan on a two-day visit. Talks were held with the Turkmen President Gurbanguly Berdimuhamedov. The two governments also held negotiations in an extended format.
It is expected to construct two export oriented enterprises for deep chemical processing of gas and production of liquid fuel (Gas-to-liquids – GTL) and polymer-polyvinyl chloride (PVH) under the new agreements of the Turkmengaz State Concern.
The local experts say the establishment of a developed gas and chemical production is the major direction, able to replace the export of natural gas via pipelines.
In mid-May 2014, the Japanese Toyo Engineering Corporation (TOYO) said it concluded a contract worth $3 billion with Turkmengaz in tandem with South Korean Hyundai and LG.
This project in Kiyanly is scheduled for completion in 2018. The complex will produce ethylene, polyethylene, high density polypropylene from the natural gas produced on the coast of the Caspian Sea. The products of the future enterprise are also meant for export to the EU and Asia.
Prior to this, LG International and Hyundai Engineering Co. LTD began realizing a project worth $534 million at an oil refinery in the city of Turkmenbashi. The project is to be commissioned in May 2015.
LG International and Hyundai Engineering Co. LTD also completed a significant project on development of the Galkynysh hydrocarbon deposit, which has the biggest natural gas reserves in Turkmenistan.
Jung Mo Jang, Vice President and the Head of Marketing Office at Hyundai Engineering Co., Ltd said in May, 2014 at a gas concern in Avaza that his company has accumulated know-how and technologies that are well-suited to Turkmenistan’s gas industry.
“To turn this into a fast tracked reality, we brainstorm innovative yet stable business development structure that will include credible financial institutions in Korea and other countries,” he said.
“Hyundai Engineering will do its utmost to arrange debt financing and expedite ECA’s financial participation. We will help arrange and seek diverse combined financing methods that will help minimize the project owner’s financial burden throughout all phases of the project cycles,” Jung Mo Jang stressed.
Turkmenistan holds a key position in the region in terms of natural gas supplies. At the same time, the country’s government has started diversifying the economy.
Oil-and-gas processing, textile, and cotton processing industries and construction materials production have been developing in the country in recent years.