American-Uzbekistan Chamber of Commerce
Business Newsletter


Weeks in Review:

August 19, 2011 - September 9, 2011


In this issue
AUCC in Brief
Samsung Engineering Wins $817 mil Deal for Uzbekistan Gas Chemical Plant
ADB to Loan Uzbekistan USD500 million for Roads
Korea, Uzbekistan Sign USD4.1 billion Gas Pipeline Deals
President Meets US Senator
Central Asia-China Natural Gas Pipeline's Capacity to Nearly Double
Freight Services Start on Afganistan Railways
Contact Us
AUCC Members
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AUCC in Brief 

Established in 1993, the American-Uzbekistan Chamber of Commerce (AUCC) is a private, non-profit trade association representing interests of U.S. businesses ranging in size from small private enterprises to large, multinational corporations conducting business in Uzbekistan.

Our Mission: To advocate the views of the business community to ensure that private sector positions are considered during the development of key policies that impact American businesses and the future of U.S.-Uzbekistan relations.

Our Objective: To serve the needs of its members by strengthening commercial relations between the United States and Uzbekistan. 

Samsung Engineering Wins $817 mil Deal for Uzbekistan Gas Chemical Plant of 8/25/2011

Samsung Engineering said late Wednesday it has been awarded a $816.7 million lump-sum turnkey contract by UZ-Korea Gas Chemical to build a $3.2 billion gas chemicals complex in Ustyurt, Uzbekistan.UZ-Korea Gas Chemical is joint venture comprising Uzbekneftegaz (50%), Korea Gas (22.5%), Honam Petrochemical (22.5%) and STX Energy (5%). The complex will be able to process 4.5 billion cu m/year of gas into 400,000 mt/year of high density polyethylene and 100,000 mt/year of polypropylene.  Korea Gas said construction of the complex will begin in 2012 and commercial production is expected to start in the second half of 2015.Of the total project cost, $1.69 billion will be funded by the joint venture, $1.21 billion by Uzbekneftegaz and $350 million from the Fund for Development and Reconstruction of Uzbekistan.

ADB to Loan Uzbekistan USD500 million for Roads Construction of 8/25/2011 

The Asian Development Bank (ADB) says it will lend Uzbekistan up to US$500 million to help improve several hundred kilometers of roads and boost transport links between Europe and Asia.The bank said its board of directors Tuesday approved an initial US$130 million tranche to reconstruct a 74-kilometer (46-mile) section of road in the densely populated Ferghana Valley, which is the site of the Central Asian nation's agricultural heartland. Uzbekistan is also contributing US$100 million of its own money to a road-building program slated for completion by 2017.Economic development across former Soviet Central Asia nations has been hamstrung since independence by crumbling and poorly maintained infrastructure.


Korea, Uzbekistan sign $4.1 bil. Gas Pipeline Deal 

of 8/23/2011

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 Meets US Senator of 8/25/2011 

President of the Republic of Uzbekistan Islam Karimov met with US Republican Senator, member of several influential Senate committees Lindsey Graham, at the Oqsaroy August 25. Welcoming the guest, the head of state said that relations with the United States are highly appreciated in Uzbekistan as much as the prospects of their consolidation are regarded with optimism. Trade and economic, investment, scientific and technological ties have been essential in the bilateral cooperation. A substantial growth in the mutual trade is anticipated this year. The talks at the Oqsaroy covered a wider range of regional and international issues. The discussion included crisis resolution in Afghanistan where Uzbekistan has been energetic in restoring peaceful life. It has been stressed that economic reconstruction in that country is critical for political stabilization and return to normal life of the population.    

Lindsey Graham expressed gratitude to the leader of Uzbekistan for a warm welcome and a thorough exchange of views on pressing issues of bilateral agenda along with other topics of shared interest. The Senator agreed that it is important for the two countries to interact in addressing the situation and imperative social problems in Afghanistan, along with securing economic renewal in that nation.

Central Asia-China Natural Gas Pipeline's Capacity to Nearly Double of 8/27/2011

The Central Asia-China natural gas pipeline's annual export capacity will reach 55-60 billion cu m by 2015, media reported August 26, quoting a China National Petroleum Corporation company newspaper (China Petroleum Daily). That figure would almost double the current estimated 2012 export capacity of 30 billion cu m. The pipeline, since it began operating at the end of 2009, has delivered 13.8 billion cu m of gas to China, according to China Petroleum Daily. It extends about 7,000km through Turkmenistan, Kazakhstan, Uzbekistan and China. To meet the capacity expansion goal, workers are scheduled to finish construction of a third branch of the pipeline in 2013, Russia's EnergoNius reported. of 8/29/2011

Freight services have started on Afghanistan's first major railway. Under a three-year agreement, Uzbekistan's national railway company (UTY) is operating the 75 km, 1,520 mm gauge line, which it built at a cost of US$165m using funding from the Asian Development Bank. The line starts at the Hairatan freight terminal on the Afghan side of the Uzbek border, which handles around half of Afghanistan's imports and is served by a Soviet-built rail spur dating from the early 1980s.  It then crosses empty steppe to a freight terminal near Mazar-e-Sharif airport. The Hairatan to Mazar-e-Sharif link is part of the Central Asia Regional Economic Co-operation (CAREC) Programme. Although the road between the two centres has been improved, it cannot meet national and regional traffic needs, according to the ADB.  Freight capacity at Hairatan reached its limit of 4,000 tons of cargo a month years ago, yet the flow of goods from Central Asia to Afghanistan is projected to rise to 25,000-40,000 tons a month over the next At a later stage, the railway network will be extended to Herat in the west and Tajikistan in the east. The railway will primarily service commercial and non-military cargo. UTY was appointed to operate the line as its only international connection is through Uzbekistan. In addition, Afghanistan lacks an indigenous rail industry which means it will take some time to train local operations and maintenance staff.  The war-torn country's only other main line railway is a short spur across the border from Turkmenistan. Although an Iranian-funded 1,435 mm gauge line is under construction from Iran to Herat, and a north-south line to serve the Aynak copper mining development is also being studied by Chinese mining.

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Contact Information


The American-Uzbekistan Chamber of Commerce
1300 I Street, N.W., Suite 720W
Washington, DC 20005
phone: 202.509.3744  








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