China Eximbank loans $158.5 million for the construction of gas fields in Gazli district

China Eximbank loans $158.5 million for the construction of gas fields in Gazli district In 2011, China Eximbank pledged to provide a $158.5 million concessional loan to Uzbekneftegaz for the construction of gas fields in Gazli (also Ghazli) district.

The project is also known as the Uzbekistan-China Natural Gas Pipeline Construction Project (or 设乌兹别克斯坦—中国天然气管道建设项目).

The relevant loan agreement was expected to be signed in the first half of 2012; however, there is no evidence that the agreement has been signed.

The project will be financed by US$685.5 million from Uzbekneftegaz, an Uzbek state-owned company, and US$156 million from the Fund for Reconstruction and Development of Uzbekistan.

The development of deposits in Gazli region will be carried out to increase hydrocarbon resource base of Uzbekistan and increase exports of natural gas. Gazli gas deposit was commissioned in 1961 and it is one of largest in the region. Preliminary gas reserves were about 500 billion cubic meters. Currently, the resources of the deposit are exhausted.

The total cost of the project is US$1 billion and envisages development of natural gas deposits in Kulbeshkak, Hodjikazgan, Dayahatin, Syuzma, Qumli, and Chegarakum in 2011-2020. The group of deposits was opened in early 1990s, but they were not developed. The project will allow to produce 5 billion cubic meters of gas a year by 2021.