Construction of the Jizzakh oil refinery complex
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Location:
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Jizzakh, Zafarobod
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Sector:
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Mineral and petroleum exploration, mining and processing
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Total cost:
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$ 1.7 bln
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Chinese partner:
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China Development Bank
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Uzbekstani partner:
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Uzbekneftegaz
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Construction start:
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2018
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Putting into commission:
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TBD |
Partners summary
China Development Bank (CDB) is a development bank in the People's Republic of China, led by a cabinet minister at the Governor level, under the direct jurisdiction of the State Council. As one of three policy banks in China, it is responsible for raising funds for large-scale infrastructure projects. CDB provides medium- to long-term financing facilities that serve China’s major long-term economic and social development strategies. Debts issued by the China Development Bank are owned by local banks and treated as risk-free assets under the proposed People's Republic of China capital adequacy rules.
Uzbekneftegaz is a state-owned holding company of Uzbekistan's oil and gas industry engaged in geological exploration, production, transportation, storage, processing and sale of oil and gas. The company ranks 11th in the world in natural gas production. It is the largest state-owned company in Uzbekistan.
Description of the project
The Jizzakh refinery is a part of the Uzbekistan government’s multi year development plan to achieve national energy independence and increase the country’s export potential. The plant will produce 3.7 mln tonnes of motor fuel complying with the Euro-5 standard, more than 1 mln tonnes of aviation kerosene, as well as liquefied gas, fuel oil, bitumen and other products. American Honeywell UOP will provide licensing and basic engineering design services to Jizzakh Petroleum for its proprietary CCR Platforming, Par-Isom, Distillate Unionfining, Unicracking, and Merox processes.[1]
With the commissioning of the Jizzakh refinery, more than 2,000 jobs will be created. To date, framework agreements have been concluded on participation in financing the project with leading banks, such as Korea Exim Bank, Chinese Development Bank, GazPromBank and Credit Suisse. [2]
In 2019, UzbekNefteGaz announced the suspension of the construction. [3] It was decided to modernise oil refineries in Bukhara and Fergana. [4] It is reported that the capacities of the Ferghana and Bukhara refineries are sufficient to fully meet Uzbekistan's fuel demand and export goods. However, the country experiences fuel shortages several times a year, long queues at gas stations, and fuel boosters increase gasoline prices. Construction of the Jizzakh oil refinery complex can be helpful to fulfill Uzbekistan’s fuel demand.
More links
https://m.kun.uz/uz/news/2019/03/15/jizzax-neftni-qayta-ishlash-zavodida-qurilish-toxtadi
https://www.bbc.com/uzbek/lotin-39741367