Turkmenistan Gets Japanese, Korean Loan for Gas Complex

Turkmenistan has secured a $2.5 billion in loans from Japan's and South Korea's export credit banks for construction of gas chemical complex, says news agency Reuters.

Earlier this month, Japan’s Toyo Engineering Corporation was awarded a contract to build the gas chemical complex for Turkmengas, in collaboration with Hyundai Engineering Co., Ltd., Hyundai Engineering & Construction Co., Ltd., and LG International Corporation of Korea.

The complex is scheduled to be completed in 2018.

"The State Bank of Foreign Economic Affairs of Turkmenistan has struck a credit agreement for $700 million with Japan Bank for International Cooperation and another one worth $1.8 billion with Korea Eximbank for 10 years to finance construction of the plant in the Balkan region of the country," a government official told Reuters.

Turkmengas will finance the rest of the contract.

The facility will have gas separation unit with 5 billion m³ per year capacity, ethylene production unit with capacity of 400,000 tons per year and polypropylene production unit capacity of 80,000 tons per year.