Solidifying Presence in Uzbekistan
SK Engineering & Construction (SK E&C) announced on Oct. 25 that it has signed a memorandum of understanding (MOU) with the Korea Energy Agency and the Ministry of Energy of Uzbekistan to renovate and modernize Mubarek Power Plant in Uzbekistan for about US$200 million.
The project aims to modernize the power plant located in the Mubarek region 410 km southwest of the Uzbekistan capital Tashkent. The 120 MW natural gas cogeneration plant started commercial operation in 1985 and now needs renovation after operation for more than 30 years.
The Uzbek government hopes to improve the performance of Mubarek Power Plant to 300 MW through the modernization project. SK E&C plans to develop technology that can significantly reduce construction costs. A feasibility study will be conducted in the first half of next year and the main contract will be concluded in 2021 based on the findings of the study.
Through this MOU, SK E&C has secured the right to carry out the project and agreed to strengthen cooperation with the Uzbek government for other projects.
In the meantime, SK E&C entered the Uzbekistan market in April this year by signing a collaboration agreement with Uzbekneftegaz, a state-run Uzbek national oil and gas corporation, for the modernization of Bukhara Oil Refinery that will cost US$600 million. The oil refinery, which has a production capacity of 50,000 barrels a year, is located in Bukhara 437 km southwest of Uzbekistan's capital Tashkent. The modernization project is intended to improve the quality of products such as gasoline and diesel from the oil refinery and meet the Eco-V, a new environmental standard.