UZB: SURGIL NATURAL GAS CHEMICALS

The project is located approximately 1,300 kilometers (km) from Tashkent in the Ustyurt region of Karakalpakstan, an autonomous republic in northwestern Uzbekistan. The integrated gas-to-chemical project consists of (i) upstream development and operations at the Surgil Field involving drilling new production wells and constructing upstream infrastructure including expanding the complex gas treatment unit to supply up to 3 billion cubic meters per annum (BCMA) of gas and 115 thousand tons per annum (KTPA) of condensate; (ii) downstream development and operations at the gas treatment site, located approximately 115 km southwest of the Surgil Field, involving constructing a new gas separation plant, an ethylene cracker, a high-density polyethylene plant, a polypropylene plant, and associated utilities and supporting facilities; and (iii) associated gas pipelines, product transportation, and water supply infrastructure; the project also includes three 35-megawatt gas turbine generator sets for power supply independent of the national grid. The project sources gas from its own Surgil Field and purchase gas, through a gas supply agreement with UNG, from the East Berdakh and North Berdakh fields. Each of the fields is currently in production and the incremental production of the three gas fields available to the project provides the required gas volume. Condensate supply (another raw material required for the polymer process) is provided under long-term supply contracts.The upstream and downstream components of the project is connected by two parallel 115-km pipelines constructed to supply gas and condensate from the Surgil Field to the gas separation plant. The process technology is supplied by each of the downstream engineering, procurement, and construction (EPC) contracts and is fully aligned with technology license arrangements, providing the project with process performance guarantees and ongoing technical support from the process licensors.