Russian LUKoil and the contracting consortium led by Hyundai Engineering (South Korea) signed a contract for the supply of equipment and construction of the Kandym gas processing plant in Uzbekistan, according to the message of LUKoil Feb.13.
The contract was signed on February 13 in Tashkent.
The message said that the gas processing plant with capacity of 8.1 billion cubic meters of gas a year will allow to process natural gas containing hydrogen sulfide from Kandym group of fields located in the Bukhara region of Uzbekistan in order to obtain purified natural gas, stable gas condensate, as well as ball sulfur and granulated sulfur.
Construction of the Kandym gas processing plant is the largest investment project of LUKoil in Uzbekistan, the message said.
The Feasibility Study (FS) of the project and working documentation for the construction will be elaborated by Hyundai Engineering.
The Lukoil company has implemented the Kandym project since 2004 together with the National Holding Company Uzbekneftegaz under the production sharing agreement (PSA) for the development of the Kandym-Hauzak-Shady-Kungrad fields.
Kandym group includes six gas condensate fields – Kandym, Kuvachi-Alat, Akkum, Parsankul, Khoji and Western Khoji. Commercial production at the Hauzak site started in autumn 2007.
In November 2014, the President of Uzbekistan approved the proposal of the National Holding Company (NHC) Uzbekneftegaz and LUKoil National company (NC) on the conclusion of contract with the Lukoil Uzbekistan Operating Company for the supply of equipment, construction of a gas processing plant and arrangement of Kandym group of fields on a “turnkey”, the total cost of which amounts to $2,662 billion.
The first phase of the project is designed for production of 2.1 billion cubic meters of gas per year from the Kuvachi-Alat field and the North Shady section of the Khauzak-Shodi deposit with the supply of gas to the Mubarek gas processing plant.
At present, LUKoil works over implementation of three projects in Uzbekistan – Kandym – Khauzak – Shady – Kungrad, development of Southwestern Gissar, as well as conducts exploration of the Uzbek part of Aral Sea as part of an international consortium.
By 2016, LUKoil plans to produce in Uzbekistan at least 18 billion cubic meters of gas per year.