Chinese Firm to Renovate Junda in $160 Million Deal
Central Asian Energy Company LLC to Invest $160 Million in Overhaul of Junda Oil Refinery
Bishkek – 10:08, 03 July 2024 – The National Investment Agency has announced that Central Asian Energy Company LLC will be undertaking a major overhaul and modernization of the Junda oil refinery at a cost of $160 million. The agreement was signed on July 2 between the Director of the National Investment Agency, Talant Imanov, and the Chairman of the Board of Central Asian Energy Company LLC, Huang Qianem.
This investment comes after a tumultuous period for the refinery, which saw a criminal case opened in December 2015 due to the management’s concealment of taxes totaling 54 million soms. The audit at that time also uncovered a shortage of 1,000 tons of gasoline in the warehouse, valued at 26 million soms, and various violations in cash accounting practices.
Following these issues, the plant suspended its operations in 2019. However, last year it was announced that the Chinese government had acquired the company from its previous investors with plans to relaunch it within two years.
The modernization and overhaul of the Junda oil refinery represent a significant step towards revitalizing the plant and ensuring its long-term sustainability. This investment will not only benefit the energy sector in Kyrgyzstan but also bring much-needed economic growth and job opportunities to the region.
The project is expected to create a more efficient and environmentally friendly refinery, capable of meeting the growing energy demands of the country. With Central Asian Energy Company LLC leading the way, the future looks bright for the Junda oil refinery.
