Uzbekistan to build Kandym gas plant’s external infrastructure by year-end


Uzbekistan Railways JSC will complete the construction of railway sidings to Kandym gas processing plant (GPP) – the main facility of the Kandym project, implemented as part of a production sharing agreement (PSA) with Russia’s Lukoil.

The length of the sidings will be 48.7 kilometers, while the cost of construction will stand at $50 million, the Uzbekistan Railways JSC told Trend.

The railway sidings’ construction is financed with help of the company’s own funds.

In addition, Uzbekenergo JSC will complete the construction of the Kandym GPP’s $58.8 million worth external power supply until the end of 2017.

It is also planned to construct a 220 kilovolt high-voltage line, with a length of 90 kilometers. Construction of power facilities is being realized through Uzbekenergo’s own funds.

Uzbekistan Railways and Uzbekenergo will also direct $108.8 million to the construction of Kandym GPP’s external infrastructure facilities.

Construction of the Kandym gas processing plant is being carried out as part of the Kandym-Khauzak-Shady PSA, signed in June 2004, with a validity of 35 years.

The agreement partners are the Lukoil, with a share of 90 percent, and Uzbekneftegaz National Holding Company, with a share of 10 percent.


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