On Sale of Natural Gas-to-Syngas Processing Facility to Air Products
Vinson & Elkins advised Uzbekneftegaz JSC (“UNG”) and Uzbekistan GTL LLC (“UzGTL”) on the sale to Air Products of a natural gas-to-syngas processing facility in Qashqadaryo Province, Uzbekistan for US$1 billion. This sale is the largest M&A transaction in Uzbekistan’s history.
The natural gas-to-syngas industrial complex is an integral part of UNG’s multi-billion gas-to-liquid (GTL) facility―one of the most advanced energy plants in the world―producing 1.5 million tonnes per year of high value-add synthetic fuels for domestic use and potentially export.
Under the purchase agreement, Air Products will acquire, own and operate two large-scale air separation units, two large-scale auto-thermal reforming units, and a hydrogen production unit within the Uzbekistan GTL complex and supply oxygen, nitrogen, hydrogen and syngas to UNG under a long-term contract. UNG will supply the feedstock natural gas and utilities and offtake all products.
The Vinson & Elkins team was led by partner Nabil Khodadad and counsel Alistair Wishart with assistance from partner Lauren Davies, senior associates Steven Wilson and Jonathan Roberts, associate Louise Fischel-Bock.
This latest transaction represents another landmark deal in Vinson & Elkins representation of UNG and its affiliates, which includes advising UzGTL and UNG on the original project financing for the construction and development of the GTL project and Uz-Kor Gas Chemical LLC, a joint venture between UNG, Lotte Chemical Corporation and KOGAS, on the financing, construction and development of the Surgil gas to chemicals project.
