Uzbekistan Plans $10 Billion Gas-Chemical Complex in Khorezm
Major Investment in Khorezm: $10 Billion Methanol-to-Olefin Complex Set to Transform Economy
Construction of a groundbreaking $10 billion methanol-to-olefin (MTO) gas-chemical complex is poised to commence this year in the Toprak-Kala district of the Khorezm region, according to official reports. This ambitious initiative aims to establish the region as a vital hub for the chemical industry, further enhanced by plans for a new chemical technopark in Hazorasp.
During a recent visit to the Khorezm region, President Shavkat Mirziyoyev highlighted these significant developments as part of a broader strategy to position the chemical industry as a cornerstone of the local economy. "This year, the first phase of the $10 billion MTO gas-chemical complex will begin in Toprak-Kala, with facilities expected to produce 2 million tons of 14 varieties of high value-added polymer products annually," stated President Mirziyoyev.
In addition to the MTO complex, a 10-hectare chemical technopark will be developed in Hazorasp, featuring polymer production projects with a combined value of $100 million. This dual development is expected to create approximately 3,000 jobs, showcasing Khorezm as a key player in Uzbekistan’s industrial landscape.
The announcement of the complex originated during the President’s visit to Khorezm last March, where he revealed that talks were in progress with prominent global companies regarding the project. "Once operational, the MTO facility will not only serve as a flagship project for Khorezm but will also significantly bolster the overall industrial sector of the country," Mirziyoyev emphasized.
Plans indicate that the complex is slated for completion between 2024 and 2028, following discussions with a “major foreign investment company” to facilitate its implementation.
In the context of regional industrial developments, it’s notable that a $1.8 billion expansion project for Uzbekneftegaz’s Shurtan gas-chemical complex has been suspended. Meanwhile, a similar MTO-based facility is under construction in the Karakul district of the Bukhara region, which is being developed by Swiss company Gas Project Development Central Asia AG along with Cyprus-registered Belvor Holdings Limited, with an investment of $2.7 billion.
Furthermore, plans for the privatization of the Uzbekistan GTL plant, built at a cost of $3.4 billion, have also emerged.
These developments illustrate a significant shift towards industrial expansion in Uzbekistan, primarily through fostering foreign investment and advancing local projects. The upcoming MTO complex in Toprak-Kala stands to play a crucial role in reshaping the economic landscape of Khorezm and beyond.
