Uzbekistan is making significant strides towards becoming a major global player in the chemicals and gas industry, as it takes steps to diversify its economy and reduce its dependence on imported polymer products. At the forefront of this ambitious endeavor is the Gas Chemical Complex MTO (GCC MTO), a groundbreaking project that is set to revolutionize the country's chemical production.
Located in Karakul, Bukhara, Gas Chemical Complex MTO is a $3.7bn investment spanning 225 hectares. Scheduled to open in 2025, it aims to produce 1.1mn tonnes of polymer materials annually. This endeavor will mark the first time that Uzbekistan has domestically produced polyethylene terephthalate, ethylene vinyl acetate, and low- and high-density polyethylene.
The complex will utilize lean natural gas from the Mubarek fields, employing cutting-edge processing plants to convert it into high-value polymers. These polymers will be used in the manufacturing of various everyday products such as solar panels, car parts, footwear, sports equipment, pipes, fittings, furniture, helmets, food packaging, and flooring. By meeting domestic demand and reducing the need for imports, the GCC MTO will play a pivotal role in boosting multiple industries including agriculture, textile, parapharmaceuticals, electrical engineering, and automotive.
In addition to the significant economic impact, the GCC MTO will create 2,000 jobs directly and over 10,000 jobs indirectly in the Bukhara region alone. Over its estimated 25-year lifetime, the complex is expected to generate $14bn in tax revenue for the government of Uzbekistan. To further strengthen its capabilities, the complex has partnered with various international corporations including Air Products from the United States, John Wood Group from the UK, Hyundai from South Korea, Sinopec from China, Topsoe from Denmark, Lummus Technology from the Netherlands, and Versalis from Italy.
GCC MTO is owned by Saneg, the largest private oil and gas company in Uzbekistan. Bakhtiyor Fazylov, Chairman of the Management Board of Saneg shared his views on this matter.
“After commissioning in full, the GCC MTO complex will play a fundamental role in transforming the economic potential of Uzbekistan. This facility will contribute to the development of new industries for the production of high-value-added products, creating thousands of skilled jobs throughout Uzbekistan,” Bakhtiyor Fazylov highlighted.
One notable collaboration is the agreement with Air Products to construct Methanol Island, a methanol production facility capable of producing 1.34mn tonnes annually. This facility will ensure a sustainable supply of methanol, hydrogen, and other industrial gases essential for the GCC MTO's production processes.
Masrur Shakirov, the General Director of the Gas Chemical Complex MTO, expressed his delight at working with Air Products, stating that the partnership would guarantee the high quality and required volume of products needed for the complex's operations. This collaboration exemplifies the growing interest from international companies in Uzbekistan's industrial development opportunities.
“Air Products has established itself as a reliable supplier of proven solutions that can guarantee us both the high quality and required volume of products we need,” Masrur Shakirov noted.
With a strong focus on environmental sustainability, the Gas Chemical Complex MTO aims to minimize its impact on the environment by utilizing the best available technologies and equipment. In line with this commitment, the complex organized a two-day clean-up project to commemorate World Environment Day. Senior management and employees participated in cleaning up popular tourist spots, collecting over 200kg of rubbish and discarded items. Recyclable items were sent for further processing, emphasizing the importance of responsible waste management and recycling.
Artem Ushakov, the GCC MTO ESG Manager, emphasized that such one-time actions have a positive effect on the environment but underscored the need for long-term solutions. Recognizing the impact of their actions on future generations, Ushakov stressed the importance of the way they treat the environment today.
"It is vitally important for all of us to make it a rule to treat nature with care, handle waste in a responsible way, sort garbage, and do everything possible to recycle it. It is how we treat the environment today that shapes not only our lives but also the future of our children and grandchildren,” Ushakov emphasized.
With international industrial giants closely observing its progress, Uzbekistan is poised to build a thriving and environmentally conscious chemicals economy. The Gas Chemical Complex MTO represents a significant milestone in the nation's journey towards becoming a global chemicals giant.
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