LUKOIL has put into full operation the Kandym gas processing complex (KGPC) in the Bukhara region of Uzbekistan, Interfax reported. The investments in the project amounted to $3.4 billion Total amount of investments is planned in volume of $5.2 billion.
The complex with a capacity of 8 billion cubic meters of gas per year is designed to prepare the gas of Kandym group of fields - production of commercial gas, stable gas condensate and commercial sulfur. It is planned to produce purified natural gas in the amount of 7.8 billion cubic meters, 134.36 thousand tons of stable condensate and 212.9 thousand tons of elemental sulfur per year.
77 wells were drilled at Kandym field and a system of collecting natural gas was created. The commissioning of the GPC will allow launching the prepared well Fund and reaching the design production shelf at Kandym field in the shortest possible time. According to the company, the complex will be released at full capacity in June 2018.
Construction of the complex began on April 19, 2016. The company signed a contract with a consortium led by Hyundai Engineering co. Ltd (South Korea) for the supply of equipment and construction on a turnkey basis.
The project was implemented within the framework of the production sharing agreement between Uzbekistan and the consortium of investors consisting of LUKOIL and “Uzbekneftegaz” in respect of the Kandym group of fields, Hauzak and shady sections, as well as Kungrad section. The Kandym group consists of 6 gas condensate fields - Kandym, Kuvachi-Alat, Akkum, Parsankul, Khodji and West Khoji.
In addition, LUKOIL is implementing the South-West Gissar project in Uzbekistan. The PSA project was signed in January 2007. In August 2017, LUKOIL brought gas production at Gissar to the design level of 5 billion cubic meters of gas per year. Total investments in all LUKOIL's projects in Uzbekistan exceeded $7 billion.
In 2018, LUKOIL plans to produce 14.6 billion cubic meters of gas in Uzbekistan against 9.09 billion cubic meters in 2017. It is expected that in 2019 gas production under the projects with the participation of the company will amount to 18 billion cubic meters, of which 15 billion cubic meters will be commercial gas. The share of "LUKOIL" will have 14-15 billion cubic meters.