The government source said that the technological part of the complex has been started and equipment are assembled. The Uzbek side constructs infrastructure. The works are conducted in line with approved schedule.

Uz-Kor Gas Chemical is a project company. Uz-Kor Gas Chemical was founded by Uzbek and Korean companies in May 2008 to develop, finance, construct and exploitation of integrated gas and oil processing project in Ustyurt region of Uzbekistan.

Uzbekneftegaz owns 50% stake in the joint venture, while Uz-Kor Gas Chemical Investment holds 50% share. Korea Gas Corporation (KOGAS), Honam Petrochemical and STX Energy are Korean founders of the venture.

Main resource base of the project is gas and gas condensate, extracted at Surgil field, license for development of which was presented to Uz-Kor Gas Chemical.

Uz-Kor Gas Chemical will produce and sell gas in market of Uzbekistan and produce gas chemical goods: polyethylene of high density, polypropylene and pyrolized gas and mazut for internal and external markets.

It is expected that construction of Ustyurt Gas Chemical Complex will start in June 2012 and it will be commissioned in early 2016.

The complex will annually process 4.5 billion cubic meters of gas and produce 4 billion tank gas, 400,000 polyethylene and 100,000 tonnes of polypropylene, as well as 100,000 tonnes of pyrolized petroleum.

The project cost is about US$4.16 billion. Foreign banks issued US$2.5 billion, while founders of Uz-Kor Gas Chemical will allocate US$1.41 billion. The Fund for Reconstruction and Development of Uzbekistan will issue US$100 million.