A Sales Joint Venture to Be Established
South Korea has obtained rights to sell the polyethylene (PE) and polypropylene (PP) that are produced at the Kiyanly Gas Chemical Plant, which is the first large gas chemical plant in Turkmenistan. The annual sales are estimated at US$700 million.
South Korean President Moon Jae-in and Gurbanguly Berdimuhamedow, president of Turkmenistan, met on April 17 and discussed bilateral cooperation issues. The South Korean president has become the second South Korean president who paid a state visit to the Central Asian country.
The two heads of state celebrated the successful completion of the Kiyanly Gas Chemical Plant and promised to keep working with each other in the field of energy plant construction and operation. A total of US$3 billion has been invested in the plant and 127 South Korean companies, including Hyundai Engineering, Hyundai Engineering & Construction and LG International, participated in the construction project.
South Korea and Turkmenistan are planning to sign a memorandum of understanding based on the summit in order to set up a joint venture for the sale of the polyethylene and polypropylene. The joint venture is likely to be organized by LG International and NAPECO, which is a marketing company invested by Turkmenistan’s state-run energy companies. The first sale is scheduled for the second half of this year.