The Export-Import Bank of Korea announced on March 26 that it plans to provide financing support of USD 1 billion for the Surgil Natural Gas Development and Chemical Plant Construction Project in Uzbekistan, a project participated by eight Korean corporations including the Korea Gas Corporation and Honam Petrochemical Corporation.

As the largest and first project finance support in Uzbekistan, the mega-project of USD 4 billion will develop a gas field in Surgil, near the Aral Sea, and produce natural gas and gas-related chemical products.

For this project, state-owned Uzbekneftegaz (UNZ) will invest 50% and a Korean consortium of Korea Gas Corporation, Honam Petrochemical Corporation, and STX Energy will invest 50% to establish a special project company, Uz-Kor Gas Chemical.

Particularly of significance is that Korean firms will take a leading role in the project, from design and construction*, project execution**, to purchase of the product***, to maximize profits.

* GS Construction, Hyundai Engineering, Samsung Engineering
** Korea Gas Corporation, Honam Petrochemical Corporation
*** Samsung C&T Corporation, Honam Petrochemical Corporation, STX Corporation.

A representative of the Bank stated, “Using our technology and financing resources to develop Uzbekistan’s abundant resources will not only serve as a model for Korean-led resource development, but also exemplify diplomacy in resource cooperation.

The Bank expressed willingness to provide financial support from the early stages of the project to the government of Uzbekistan and sponsors after thorough analysis of the project’s business potential and financing effectiveness.

The Bank facilitated smooth financing for the overall course of the Surgil Gas Project by utilizing its expertise and knowledge gained from competing and cooperating with ECAs and international commercial banks since its first PF in the late 1990s.

Chairman Yong Hwan Kim of the Export-Import Bank of Korea commented, "This project reconfirms the competitiveness and technologies of Korean oil and gas industries. I hope this project will serve as a bridgehead for the further advancement of Korean firms into Central Asia."