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The first resident of the Karakul FEZ

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Первый резидент СЭЗ «Каракуль»

Gas-chemical Complex based on MTO technology became the first participant in the Karakul Free Economic Zone in Bukhara region.

As a result of an auction, the company received a 225-hectare plot for 30 years.

Following an auction, the management of the Karakul Free Economic Zone (FEZ) signed an investment agreement with Gas Chemical Complex MTO Central Asia LLC to build a gas-chemical facility between 2022 to 2025 and produce polymer raw materials, which will be supplied to other FEZ members and local producers.

Masrur Shakirov, General Director of the MTO Gas Chemical Complex:

“The Gas-chemical Complex of MTO will be a part of the gas-chemical cluster. Together with allied industries we will produce from gas products demanded in the Republic of Uzbekistan for automotive, textile, food, medical and other industries.

About 2,000 direct jobs and another 10,000 indirect jobs will be concentrated in the FEZ”.

Bakhodur Khafizov, Director General of the Karakul Free Economic Zone:

“Since the launch of the FEZ project, we have been working to attract participants who will effectively address the task set by the President of the Republic of Uzbekistan to produce products with high added value.

MTO Gas Chemical Holding became the first participant in the FEZ. The enterprise will produce raw materials, which are expected to be sent first for use by other FEZ participants”.

According to the legislation, the competition among applicants is held in two stages. In the first stage, each company shall submit an investment project that it plans to implement on the territory of the Karakul FEZ and defend it before the Free Economic Zone Directorate. Following the approval of the investment project, the lot for the land plot is put up for auction, which is organised on the independent electronic trading platform E-auction.

In the first tender for the largest lot, which was held from October to November, the winner was Gas Chemical Complex MTO Central Asia LLC, the construction operator of the Gas-chemical Complex based on MTO technology.

The largest Uzbek producers, SAG, UrGaz, Vero Group and Merganteks, have already expressed their intention to work in the FEZ.

Karakul Free Economic Zone

Karakul Free Economic Zone in Bukhara region was established by the Decree № 357 of the Cabinet of Ministers of the Republic of Uzbekistan dated July 4th, 2022. The area of the FEZ is 400 hectares.

The decree shows that the territory will have a sectoral focus, with the implementation of the largest gas chemical cluster in the country, where polymer raw materials will be produced from processed natural gas, as well as established production of end products.

MTO Gas Chemical Complex

The MTO Gas Chemical Complex (GCC MTO) will become an anchor resident of the Karakul Free Economic Zone, where it will produce 730,000 tonnes of gas chemical feedstock per year from natural gas.

Sourse: Press office GCC