Chinese Conglomerate Secures Multi-Billion Green-Energy Deal in Uzbekistan

photo: Eurasianet

Chinese Conglomerate Secures Multi-Billion Green-Energy Deal in Uzbekistan

China’s state-owned conglomerate Sinopec Engineering Group has reached an agreement with Australia-based Allied Biofuels to conduct engineering, design and construction work on a $6.1 billion biorefinery project in Uzbekistan.

At full capacity, the refinery is expected to annually produce over 400,000 tons of environmentally friendly sustainable aviation fuel (SAF), electro-SAF and renewable diesel, The Caspian Post reports via Eurasianet.

Under the deal, Sinopec will be responsible for the entire project implementation cycle, from the FEED phase, where it will define the project’s scope, technical requirements, cost estimates, and material specifications, to the EPC stage, where Sinopec will build the biorefinery and hand it over to Allied Biofuels ready for operation. While the value of the contract was not announced, given the extent of Sinopec’s involvement, it will likely be paid the bulk of the $6.1 billion that the project is slated to cost.

More from Uzbekistan

Uzbekistan’s Tourism Committee signed deals with a variety of Chinese tourism-related entities, including China’s Tourism Chamber of Commerce, Argyle Hotels Group, Minor Hotels and Shaanxi Keda-Gaoxin International Culture & Technology Group, to develop tourism infrastructure in the Central Asian state, according to the Kursiv news outlet. Uzbekistan’s tourism industry has experienced explosive growth in recent years, establishing itself as one of the fastest-growing tourist destinations globally.

Kazakhstan

Kazakhstan intends to suspend tariffs on supplies of gasoline, diesel and jet fuel from China, aiming to boost imports, writes Forbes.kz citing Kazakh Trade Ministry sources. With Russia, Kazakhstan’s traditional supplier of such products, grappling with its worst fuel crisis in decades due to Ukraine’s drone attacks, Kazakhstan appears to be looking for new suppliers. It is possible that Kazakhstan may reexport a portion of potential Chinese energy supplies to Russia; Moscow has in recent days reportedly asked Kazakhstan for 50,000 tons of gasoline to help address a severe shortage across Russia.

Kyrgyzstan

Kyrgyzstan’s parliament adopted in its first reading a bill approving a concessional loan from China of approximately $304.5 million. The funds would be used to finance 50 percent of Kyrgyzstan’s share in the China-Kyrgyzstan-Uzbekistan railway project. A contract for the loan was signed by Kyrgyzstan’s Cabinet of Ministers and the Export-Import Bank of China earlier in June, reports 24.kg.

Following a recent meeting in Bishkek, interested parties along with the board of directors of the China-Kyrgyzstan-Uzbekistan Railway Company LLC signed an agreement covering in the construction of the railway on Kyrgyz territory. The document contains provisions concerning transparency, legal norms and anti-corruption measures. It also stipulates that signage along the route, including hazard signs, must be posted in Kyrgyz and Chinese. Additionally, employment provisions call for a steady increase in the hiring of Kyrgyz citizens to fill construction jobs, reports 24.kg.

Tajikistan

Tajikistan’s state-run Forestry Agency announced a partnership deal with the China-Central Asia Cooperation Center for Combating Desertification. The partnership will focus on combatting desertification and land degradation, mitigating the impacts of climate change, as well as the deployment of modern technologies to restore natural ecosystems, according to a report distributed by Tajikistan’s official news agency Khovar.

Turkmenistan

China is extending its soft-power influence in Turkmenistan via trainings for legislators and energy industry specialists. Turkmen MPs recently participated in the seminar in Beijing titled “Enhancing the Role of Legislative Bodies and Strengthening China-Central Asia Cooperation,” organized by the Standing Committee of China’s National People’s Congress, according to a statement issued by Turkmenistan’s rubber-stamp parliament. Also held in Beijing was a training seminar for the faculty of the Yagshygeldi Kakayev International Oil and Gas University, according to a Turkmen Foreign Ministry statement.

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Chinese Conglomerate Secures Multi-Billion Green-Energy Deal in Uzbekistan

China’s state-owned conglomerate Sinopec Engineering Group has reached an agreement with Australia-based Allied Biofuels to conduct engineering, design and construction work on a $6.1 billion biorefinery project in Uzbekistan.