Construction of polyvinylchloride Construction of polyvinylchloride (PVC) and caustic soda (PVC) and caustic soda

production complexproduction complex

The project purpose

The organisation a complex of manufacture of caustic soda and polyvinylchloride (PVC) with use ethylene from Shurtan GCC

Problems solved by the project

The organisation of new manufacture caustic soda in volume 32, 0 thousand tons a year;

Expansion of existing manufacture ethylene with increase in capacity at 25,0-30,0 thousand tons in a year;

The organisation of manufacture of polyvinylchloride (PVC) in volume of 51,0 thousand tons a year 2

3

4

Placement of the project

Building placeBuilding place

Slide 5

PVC susp

PVC unitPVC unit

Oxygen

ChlorineEthylene

Tehnical salt

Caustic soda and chlorine unit

Caustic soda and chlorine unit

WaterNatural gas

Ethylene unitEthylene unit

VCM

VCM unit

6

Oman Oil Company S.A.O.C.The scheme of realization of the project

DAK«Uzkimyosanoat»

NHC«Uzbekneftegas»

Engineering company carries out building "on a turn-key basis"

shareholding

Project company

Complex

Approximate cost of the project – 195 million USD7

The period of realization of the project

36 month

Designing 12 month

Procurement of the equipment and materials

18 month

Civil and erection works 30 month

8

Organization of Di-methyl ethere (DME) production at

“Navoiazot” JSC

10

PROJECT OBJECTIVEPROJECT OBJECTIVE

Creation DME (Di-Methyl Ether) production to use it as a substitute of LPG and diesel fuel as a clean fuel without SOx and soot and improved ecological characteristics.

Approximate project cost – 90 million USD.

11

There are two main technologies of DME production:

1. “Methanol Dehydration” (Indirect synthesis)

2. “Direct synthesis”

12

Feed Syngas(CO + H2)

Methanol(CH3OH)

DME +H2O(CH3OCH3+ H2O) DME

Water

Indirect synthesis Indirect synthesis (methanol dehydration)(methanol dehydration)

CO + 2H2 ⇔ CH3OH (1)

2CH3OH ⇔ CH3OCH3(DME) +H2O (2)

CO + H2O ⇔ CO2 + H2 (3)

13

Direct synthesis Direct synthesis (from gas, coal, biomass)(from gas, coal, biomass)

3CO + 3H2 ⇔ CH3OCH3(ДМЭ) +CO2 (1)

2CO + 4H2 ⇔ CH3OCH3(ДМЭ) +H2O (2)

2CO + 4H2 ⇔ 2CH3OH (3)

2CH3OH ⇔ CH3OCH3(ДМЭ) +H2O (4)

CO + H2O ⇔ CO2 + H2 (5)

FeedSynthesis

gas(CO + H2)

Methanol(CH3OH)

DME + X(CH3OCH3+ X) DME

X

Feed = Natural Gas , Bio-Mass, CoalX = CO2 or H2O or Methanol

The proposed functional scheme of The proposed functional scheme of coco--production of methanol and production of methanol and

dimethyl ether (DME) from natural gas dimethyl ether (DME) from natural gas at at ““NavoiazotNavoiazot”” JSC JSC

Operating facilities

Unit for conversion

of gas

Unit for preparing of

synthesis gas

Compressors for

synthesis of gas

Unit for raw

methanol synthesis

Methanol rectification

DME rectification

Unit for synthesis of DME (dimethyl

ether)

The new created facilities

14

«Building of industrial plastic producing factory»

16

PROJECT PURPOSEPROJECT PURPOSE

Creation of polymeric materials with the set properties, home market saturation by new kinds of technological raw materials and the goods

Project capacity – 7 thousand ton/year

17

PRECONDITIONS FOR PROJECT REALIZATION

• Presence of own raw-material base:- operating production of polyethylene in assortment on Shurtan GCC;- it is planning creation on the basis of Surgil field (Republic Karakalpakstan) new natural gas chemical complex with polypropylene and polyethylene production;- it is planning beginning of production of resin of the PVC on “Navoiazot” OJSC;• Presence of an industrial infrastructure in OJSC “Djizakk plastmassa”:- Operating engineering networks and communications.- Free industrial building with the area 4,2 thousand m2.- increasing requirement of branches of economy for polymeric compositions of the set property.

18

COMMODITY MARKETS

Domestic market estimated 4500 ton approximately.

Buyers:• The enterprises of the building and local industry:- PVC plasticate - 4000 ton;

• The car industry enterprises:- Polypropylene compositions - 400 ton;

• “Uzeltechsanoat” enterprises:- thermoelastopolastic and polyethylene compositions - 100 ton;

• Export 2500 ton. To the nearby countries, including the PVC plascticate – 2000 ton.

19

COST OF THE PROJECT AND FINANCING

Estimated project cost 5,0 mln. USD*

- EquipmentIt will be defined at feasibility study of

the project- Construction works

Financing sources

- Loans from commercial banks 1,5 mln. USD

- Investments 3,5 mln. USD

* Will be defined at feasibility study of the project

Enterprises offered to foreign investors

Enterprise Location Main products Assets to be sold

Ferganaazot JSC Fergana region, Fergana city

Ammonia, ammonium nitrate, urea, defoliants, sodium chloride, cellulose diacetate

51%

Samarkandkimyo JSC

Samarkand regionSamarkand city

Nitro-calcium phosphate fertilizer 100%

Djizzak plastmassa JSC

Djizzak regionDjizzak city

Polymeric pipes and films 58%

Fergana furancompounds plant

Fergana regionFergana city

Cotton cellulose, drilling reagents 100%

Fergana chemicalfiber plant

Fergana regionFergana city Tire cord, acetic fiber 100%

Kungrad sodaash plant

KarakalpakstanKungrad town Soda ash, technical salt 74%

20

«FERGANAAZOT» JSC

Location: Fergana region, Fergana city.

Number of personnel: 5700

Production value (2009): 110,5 mln. USD.

Export value (2009): 56,8 mln. USD.

Main products: Ammonia, ammonium nitrate, urea, sodium chloride, chlorine-magnesium defoliant, cellulose diacetate.

Main markets: Central Asian states, Central and Eastern Europe, Iran, Pakistan, Turkey, Ukraine, Russia, China.

Privatization: 51% shares of the enterprise are to be sold to foreign investors.

Cost: Starting price not less than 52 000 thousands USDinvestment obligations 55 000 thousands USD

21

«SAMARKANDKIMYO» JSC

Location: Samarkand region, Samarkand city.

Number of personnel: 800

Production value (2009): 6,9 mln. USD.

Main products: Nitro-calcium-phosphorous fertilizer («Nitrofos»).

Main markets: Central Asian states, Afghanistan, Ukraine.

Privatization: 100% shares of the enterprise are to be sold to foreign investors.

Cost: Starting price not less than 20 506 thousands USDinvestment obligations 7 300 thousands USD

22

«JIZZAKH PLASTMASSA» JSC

Location: Jizzakh region, Jizzakh city.

Number of personnel: 450

Production value (2009): 4,1 mln. USD.

Export value (2009): 389 thousand USD.

Main products: Polyethylene film, polyethylene pipes, polymeric goods of common use.

Main markets: Central Asian states, Russia.

Privatization: 57.67% shares of the enterprise are to be sold to foreign investors.

Cost: Starting price not less than 3 630 thousands USDinvestment obligations 5 000 thousands USD

23

«FERGANA CHEMICAL PLANT OF FURAN COMPOUNDS»

Location: Fergana region, Fergana city.

Number of personnel: 920

Production value (2009): 5,5 mln. USD.

Export value (2009): 4,8 mln. USD.

Main products: Cotton cellulose, furfural, furfural alcohol, ethyl alcohol, FHL-1 boring reagent.

Main markets: Russia,Ukraine, Iran, China, Israel.

Privatization: 100% assets of the enterprise are to be sold to foreign investors.

Cost: Starting price not less than 37 000 thousands USDinvestment obligations 2 600 thousands USD

24

«FERGANA CHEMICAL FIBER PLANT»

Location: Fergana region, Fergana city.

Number of personnel: 1200

Production value (2009): 3,2 mln. USD.

Export value (2009): 314 thousand USD.

Main products: Acetic fiber, Polyanide-6 chips, tire cord.

Main markets: Central Asian states, potential - Russia,Ukraine, Central and Eastern Europe.

Privatization: 100% assets of the enterprise are to be sold to foreign investors.

25

«KUNGRAD SODA ASH PLANT»

Location: Republic of Karakalpakstan, Kungrad city.

Number of personnel: 1300

Production value (2009): 17,1 mln. USD.

Export value (2009): 5,8 mln. USD.

Main products: Soda ash, technical salt.

Potential markets: Central Asian states, Russia,Ukraine.

Privatization: 74% assets of the enterprise are to be sold to foreign investors.

26

Thank you forThank you foryour attention!your attention!