Samsung Engineering said late Wednesday it has been awarded a $816.7 million lump-sum turnkey contract by UZ-Korea Gas Chemical to build a $3.2 billion gas chemicals complex in Ustyurt, Uzbekistan.
UZ-Korea Gas Chemical is joint venture comprising Uzbekneftegaz (50%), Korea Gas (22.5%), Honam Petrochemical (22.5%) and STX Energy (5%).
The complex will be able to process 4.5 billion cu m/year of gas into 400,000 mt/year of high density polyethylene and 100,000 mt/year of polypropylene.
Korea Gas said construction of the complex will begin in 2012 and commercial production is expected to start in the second half of 2015.
Of the total project cost, $1.69 billion will be funded by the joint venture, $1.21 billion by Uzbekneftegaz and $350 million from the Fund for Development and Reconstruction of Uzbekistan.
