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Uzbekistan's Oltin Yo'l gas-to-liquids plant to start output in 2021

Published on - Tue, 12 May 2020 13:53:30 GMT

  • Plant will process 3.6 Bcm/year
  • Energy market volatility not impacting development
  • Construction continues despite COVID-19 measures

The Oltin Yo’l gas -to-liquids project in southern Uzbekistan will start production of synthetic diesel fuel, jet fuel , naphtha and LNG in 2021, the general director of the project told S&P Global Platts.

“We plan that by the end of this year all construction, installation and pre-commissioning work will be completed, and in 2021 the production of products will begin,” Fakhritdin Abdurasulov said by email.

The volatility on energy markets has not affected launch plans, as the project has long-term gas sales and purchase agreements and product offtake agreements, Abdurasulov said.

“However, given that Uzbekistan is part of the global market, in the future prices and production volumes will probably be adjusted, depending on the market. At the same time, we are confident that the price of our products will remain competitive, given that GTL products will be produced from parent company Uzbekneftegaz ’s own gas ,” he said.

Measures to protect against the spread of the coronavirus pandemic introduced at the project mid-March have not affected project plans and timeframes.

“Given the strategic importance of the Oltin Yo’l GTL project for the economy of the republic, construction and installation work continues at an active pace, with strict observance of quarantine requirements, precautions and primary protection,” Abdurasulov said.

Output plans

Following the launch, the operator plans a phased increase in output.

At full design capacity it will process 3.6 billion cubic meters of gas /year. Planned output volumes include 1.5 million mt of environmentally friendly synthetic liquid fuels, including more than 307,000 mt of jet fuel , 724,000 mt of diesel , 437,000 mt of naphtha and 53,000 mt of LNG .

Those products will primarily supply Uzbekistan ’s domestic market.

“GTL products will be of strategic importance, especially in terms of ensuring and maintaining Uzbekistan ’s fuel and energy independence. With the start of production at the GTL plant, imports of diesel and jet fuel into the republic will be significantly reduced,” Abdurasulov said.

Following expansion of the Shurtan gas chemical complex, naphtha from Oltin Yo'l will also be shipped there, to increase polymer products production.

Abdurasulov said exports were possible under the product purchase agreement, including to CIS and Asian markets, but it would depend on Uzbekneftegaz and entail significant logistical costs.

In line with a presidential decree, Uzbekneftegaz will compensate for volumes redirected to Oltin Yo'l to ensure domestic natural gas consumers continue to have sufficient supplies, and without reducing exports.

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