Lukoil begins operations at gas processing complex in Uzbekistan

Russian multinational energy firm Lukoil has commenced operations at a gas processing complex, which has a capacity of eight billion cubic meters of gas per year, at its Kandym fields cluster in Uzbekistan.

Construction of the Kandym gas processing complex began two years ago and involved around ten thousand people.

Lukoil intends to use the new facility to convert gas from the Kandym fields cluster to marketable gas, stable gas condensate, and marketable sulfur.

A total of 77 wells were drilled at the cluster, where a gas gathering facility is also located.

With the complex now in operation, the company intends to launch the pre-drilled wells at the field and achieve the projects’ plateau production level.

The Republic of Uzbekistan president Shavkat Mirziyoyev said: “In Uzbekistan, we highly appreciate and value strategic partnership and alliance type of the relationships with Russia built on trust, mutual support and benefit, and consideration of common interests.”

Lukoil built the gas processing complex under a production sharing agreement (PSA) regarding the Kandym group of fields, Khauzak-Shady and Kungrad areas.

Russian Federation president Vladimir Putin said: “Built with the use of the advanced technological solutions and factoring in the most up-to-date health, safety, and environmental protection requirements, the new gas processing complex will become one of the largest in Central Asia.”

The PSA for the Kandym-Khauzak-Shady project was signed in June 2004 for a period of 35 years.

In 2015, the company secured an extension of the PSA until 2046.

The company is required to develop six separate Kandym gas condensate fields, in accordance with the PSA.