Korea, Uzbekistan sign $4.1 bil. gas pipeline deal
By Kang Hyun-kyung
TASHKENT — Korea and Uzbekistan Tuesday signed contracts worth $4.1 billion to develop a gas field and build a pipeline along with a related plant in the Central Asian country.
The agreements to develop the Surgil gas field near the Aral Sea and build a gas and chemical plant will be the largest-ever cooperative project in the energy area between Korea and Uzbekistan since the countries established diplomatic relations in 1992.
The Surgil gas field holds an estimated 4.7 trillion cubic feet of natural gas.
Under the gas and pipeline deal, the Korean consortium led by the Korea Gas Corporation, in collaboration with the state-controlled gas firm UNG of Uzbekistan, will jointly develop the gas field near the Aral Sea.
Three Korean firms, GS E&C, Hyundai Engineering and Samsung Engineering, will build a plant near the gas field.
The contracts consisted of four separate deals. The gas field and pipeline project was signed between the Korea-Uzbekistan joint venture (UZKOR) and UNG.
The Korea consortium consisting of GS E&C, Samsung Engineering and Hyundai Engineering signed three related pacts with UNG to build a related plant to produce and manufacture ethylene as well as associated facilities.
The two sides signed the contracts on the sidelines of the Korea-Uzbekistan summit held here.
President Lee Myung-bak and President Islam Karimov agreed that the success of the ongoing Surgil project will have a positive effect on bolstering economic relations between the two sides.
The leaders shared the view that bilateral ties are expanding into infrastructure building, information technology, the health and medical service sectors and the fabric industry.
Lee and Karimov agreed to facilitate social and cultural exchanges as the two nations are set to celebrate the 20th anniversary of establishing diplomatic ties next year.
They adopted a joint statement addressing strengthened economic relations.
Lee and Karimov have held talks every year since 2008.
On the sidelines of the talks, the foreign ministries of the two countries signed a visa accord allowing businesspeople and their families to travel to each other’s country multiple times once they acquire a visa.
Under the agreement, Korean and Uzbekistan workers and businesspeople can extend their stay in the partner country every three years. They can stay there after renewing their visa until their employment contract ends.
The Ministry of Knowledge Economy also signed with its counterpart a memorandum of understanding (MOU) aimed at facilitating industry and energy cooperation.
After the talks Lee joined the Korea-Uzbekistan business forum where business leaders of the two countries met to seek business opportunities, investment and possible cooperation.
Uzbekistan is Lee’s second stop in his five-day trip to Central Asia. Lee arrived here Tuesday after wrapping up his trip to Mongolia where he agreed to bolster ties with resource-rich nation.
Lee will head to his last stop Astana Wednesday at the invitation of Kazakhstan’s President Nursultan Nazarbayev. The two leaders will hold talks a day after Lee’s arrival in the country. They will adopt a non-binding agreement aimed at bolstering ties in trade, investment, energy, natural resources, environment, health, information technology and agriculture. After the summit, Lee will attend a Korea-Kazakhstan business forum.