Number of cars, consuming compressed gas, to reach 29% in Uzbekistan by 2016

Tashkent, Uzbekistan ( -- Uzbekistan plans to implement five projects on re-equipment of automobiles to consuming gas within the programme on priorities of development of industry in the country for 2011-2015.

By the end of 2015, Uzbekistan plans to open 352 gas filling compressor stations (GFCS), according to the Uzbek State Inspection on control over use of oil products and gas under the Cabinet of Ministers (Uzgosneftegazinspektsiya).

Currently, 135 GFCS are operating in various regions of Uzbekistan and ten new stations are under construction. According to Uzgosneftegazinspektsiya, total number of cars in Uzbekistan made up 1.634 million, while number of cars, consuming liquefied gas, makes up 7% (114,100 cars) and compressed gas – 8% (129,200 cars).

In particular, the programme on industrial development included project on construction of 50 GFCS in several regions of Uzbekistan. The cost of the project is US$42.8 million. Korean companies KOGAS and Kolon are foreign partners of the project and they will invest US$21.4 million to the project. Other part of investment will be directed by Uzbekneftegaz. The project will be implemented in 2011-2014.

Uzavtosanoat (Uzbek Car Industry) joint stock company plans to launch production of Lacetti sedans, consuming compressed natural gas. The production capacity will be 5,000 cars a year. Total cost of the project is US$3.7 million. The project will be implemented by 2012.

GM Uzbekistan started to produce Damas microbuses, which are consuming compressed natural gas, in the first half of 2010. The production of Damas models, consuming compressed natural gas, will be fully completed by the end of 2011. The project cost is estimated at US$5 million. The planned volume of Damas production will be 25,000 cars a year.

The government also included three projects to list of perspective investment projects in industry, which are under development now. In particular, it is planned to realize production of engine jacket equipment, used for transferring cars to compressed gas consumption. The capacity of the production will be 100,000 units a year. The forecasted project cost is US$7 million. It is planned to implement it in 2012-2013. Honeywell (USA) is carrying out feasibility study of the project now.

At the same time, Honeywell plans to participate in project on creation capacities on production of equipment for GFCS. Preliminary production volume is 50-200 equipment a year. The project cost is US$5 million. It will be also realized within 2012-2013. Besides, it is planned to develop feasibility study for launching of capacities on production of system on decreasing and metering pressure (reducers, manometers) for cars consuming gas. The production capacity is set at 50,000 units a year. The preliminary cost of the project is US$7 million and it will be implemented in 2012-2013. The project is developed in cooperation with Honeywell.

According to Uzgosneftegazinspektsiya, number of cars, consuming compressed gas, will be increased to 29%. It is planned that the work on development of gas vehicles infrastructure will be boosted due to localization of corresponding spare parts, equipment and materials. All above mentioned projects will be exempted from customs duties (except registration fee) for imported equipment, spare parts and materials.

In line with the resolution of the Cabinet of Ministers, the rate of tax for individual for consumption of liquefied gas for transport means was set at the level of 140 soums per liter from 1 January 2011. The rate of tax for individual for consumption of compressed gas for transport means was set at 175 soums per 1 cubic meter.

By the end of 2012, Uzbekneftegaz plans to increase production of liquefied natural gas by 2.8 times to 586,900 tonnes. It is planned to construct new facility on liquefied gas production and reconstruction of existing ones. It is planned to attract US$320 million of foreign investments to this project. The liquefied gas production will mainly increase at Mubarek gas processing plant and Shortanneftegaz.

Besides, it is also planned projects on modernization of gas fractionation plants at Ferghana and Bukhara oil processing plant and utilization of associated gas at Kokdumalak field.

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