Prime-Tass reported quoting department of foreign economic complex of the Cabinet of Ministers of Uzbekistan, the cost of the project is US$500 million.

The project on construction of gas processing plant will be carried out within construction of oil and gas fields at Baisun investment block. The plant will process 4 billion cubic meters of gas a year.

The capacity of the gas processing plant will also receive gas from two more projects in Surkhandarya region, the governmental source said.

It is expected that the first launcher will be commissioned at Gidjak field, which is the largest field of Baisun investment block, in 2012.

In May 2010, the government of Uzbekistan and Petronas signed product sharing agreement (PSA) on development of oil and gas fields at Baisun investment block. The agreement came into force in September 2010. The agreement designed for 35 years. Preliminary gas production will make up 2.5 billion cubic meters.

In April 2011, Petronas and Delta Oil Company signed agreement on creation of investment consortium for implementation of the PSA.

Currently, the sides are completing development of preliminary feasibility study of the project and after its approval the sides will agree commercial terms of the PSA. The preliminary cost of the project was US$660 million, but it rose to US$1.527 billion.