Three leading banks in Europe will participate in financing a project to expand the production capacity of the Shurtan Gas Chemical Complex.

The corresponding agreements between Uzbekneftegaz and Deutsche Bank, Landesbank Baden-Wuerttemberg and Landesbank Hessen-Thüringen Girozentrale (Helaba) banks were signed during the Tashkent Economic Forum, the ministerial press service reports.

Thus, an agreement was signed with banks Helaba and Landesbank Baden-Wuerttemberg for €300 million, with Deutsche Bank – up to €500 million.

At the same time, the borrowings were attracted not under the state guarantee, but under the insurance coverage of Euler Hermes (Germany).

The total cost of the project is about $1.8 billion, of which $1.2 billion will be provided by a consortium of foreign banks and financial institutions, and $600 million by Uzbekneftegaz.

Expansion of the production capacity of the Shurtan Gas Chemical Complex will ensure the production of an additional 280,000 tons of bimodal polyethylene, 100,000 tons of polypropylene and 50,000 tons of pyrolysis distillate per year.

The raw material base for the projected expansion facilities of the Shurtan Gas Chemical Complex is synthetic naphtha, which will be produced at the synthetic liquid fuel (GTL) plant.