Uzbekistan's Gas Chemical Complex MTO Central Asia LLC, an innovative leader in polymer production, has signed an industrial gas processing agreement with Air Products to build a methanol production facility. Known as Methanol Island, the facility would have a capacity of 1.34 million tons per year, as a part of the Methanol-to-olefin (MTO) gas chemical complex in Uzbekistan.
The facility, to be built in the Karakul Free Economic Zone situated in Uzbekistan's Bukhara region, will cover 15 hectares. It is planned to enter operation in 2025 for an expected operational life of 25 years.
Using world leading innovative technologies, Uzbekistan's GCC MTO complex (unlike traditional MTO facilities that use less environmental-friendly coal) is designed for deep processing of specific natural gas with a low content of valuable components into high value polymer products with a production capacity of over 1,110,000 tons per year. The company will produce:
- Polypropylene (250,000 t/y), used for the production of artificial fibers, electrical engineering and automotive components.
- Low-density polyethylene (80,000 t/g), which is a raw material for the production of pipes, insulating materials, packaging and food films and moldings.
- Ethylene vinyl acetate (100,000 t/y) used for the production of floor coverings, footwear and sports equipment.
- Polyethylene terephthalate (300,000 t/g), which can also be used for the production of containers, films and synthetic fibers.
- High density polyethylene (280,000 t/g), used for the production of pipes and fittings, barrels, canisters for fuel, freezer containers, safety helmets, furniture fittings.
- Local production will help Uzbekistan reach its goal of diversifying the economy, substitute imports and potentially export products to other regions.
The methanol facility would ensure the sustainable supply of methanol, hydrogen and other industrial gases such as oxygen and nitrogen, which are essential for the MTO gas chemical complex's production processes.
Masrur Shakirov, General Director of the Gas Chemical Complex MTO, said: "We are delighted to be working with Air Products, the world's leading industrial gases company, as partners in the complex. 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. Air Products' investments highlight the degree of interest shown by international companies in Uzbekistan's industrial development opportunities."
The official signing ceremony was held in Tashkent City Congress Hall.
When completed, the Methanol Island facilities would include the following areas:
- A Hydrogen Unit and an Air Separation unit which would produce mainly hydrogen, oxygen and nitrogen.
- A Methanol unit for synthesis gas (syngas) production and its further conversion into methanol. The process is based on Topsoe technology
Under the purchase agreement―which is fully aligned with Air Products’ leading on-site business model―Air Products will acquire, own and operate two large-scale air separation units, two large-scale auto-thermal reforming units, and a hydrogen production unit within the Uzbekistan GTL complex and supply oxygen, nitrogen, hydrogen and syngas under a long-term, take-or-pay/fixed fee contract to UNG. UNG will supply the feedstock natural gas and utilities and offtake all products.
Commenting on the agreement, Air Products’ Chairman, President and CEO Seifi Ghasemi said, “Air Products is proud to be deploying our knowledge, experience and technology to help nations around the world access and maximize their abundant energy sources more sustainably. With this strategic acquisition in Uzbekistan, a high-growth environment underpinned by strong government support, we will bring our best-in-class operational and supply competencies to bear. This will enable UNG to seamlessly produce low-cost, high-purity fuels that enable the Republic to meet its growing energy production and societal needs. We look forward to building on this long-term, sustainable partnership and are excited about future opportunities in Uzbekistan and the Central Asia region.”
“Cooperation between the Uzbekistan GTL plant and Air Products is of great importance as it represents a partnership that promises to unleash the enormous potential of the energy sector of the Republic of Uzbekistan,” commented Sidikov Bakhodirjon Bakhromovich, the Chairman of the Board of Uzbekneftegaz JSC. Using a combination of Uzbekneftegaz's experience in processing natural gas into high value-added products and Air Products' leadership in the implementation of mega projects, we are starting to work together to achieve common creative goals, such as increasing production efficiency, reducing the final cost of products and reduction of harmful emissions. We are optimistic about the benefits this cooperation will bring both to the company and our Republic as a whole.”