BAKU, Azerbaijan, October 27. Uzbekistan is seeking to expand domestic hydrocarbon processing and diversify its chemical industry through deeper cooperation with South Africa's Sasol Limited, highlighting the potential for stronger economic and technological ties between Central Asia and Africa.
Recent meetings brought together representatives of Sasol, Uzbekistan's Ministry of Mining Industry and Geology, and state-owned oil and gas company Uzbekneftegaz to discuss potential cooperation in coal processing, gas-to-liquids (GTL) technologies and base oil production.
The discussions align with President Shavkat Mirziyoyev's efforts to increase the domestic processing of natural resources, develop higher-value-added manufacturing and attract international expertise to Uzbekistan's industrial sector. They also illustrate how cooperation between companies from different continents could support technology transfer and the development of new industrial capabilities.
Although the proposed projects remain under discussion, the talks provide an example of how Uzbekistan is seeking to broaden its international industrial partnerships beyond its immediate geographic neighborhood.
Building on an established GTL partnership
Uzbekistan already has an industrial foundation for cooperation with Sasol through the Uzbekistan GTL plant in the Kashkadarya region.
The facility uses Sasol's Slurry Phase Distillate technology to convert natural gas into synthetic liquid fuels, including diesel, aviation kerosene, naphtha and liquefied petroleum gas. According to Invest Uzbekistan, the plant processes approximately 3.6 billion cubic meters of natural gas annually and has a production capacity of around 1.5 million tons of liquid fuels.
In June 2025, Uzbekistan GTL successfully completed a full-capacity performance test, marking its transition to full commercial operation, according to Sasol. The process combines Sasol's technology with technologies supplied by other international partners.
The plant illustrates how advanced processing technologies can transform domestic natural gas into products with greater industrial and commercial value than unprocessed feedstock.
The meeting between Uzbekneftegaz Chairman Abdugani Sanginov and Sasol Vice President Lourens Jacobs focused on maintaining supplies of catalysts and cluster filters required by the existing facility, alongside potential new projects in the oil and gas chemicals sector.
Moreover, the parties discussed a possible base oil production project and additional applications of GTL technology.
If developed, such initiatives could broaden Uzbekistan's domestic production base and create opportunities to supply industries that rely on specialized petroleum-derived materials. However, the commercial viability of any new facility would depend on its scale, feedstock requirements, production costs and access to customers.
Mirziyoyev prioritizes higher-value industrial output
The Sasol talks form part of a broader government agenda led by President Shavkat Mirziyoyev to increase the value generated from Uzbekistan's natural resources through advanced processing and industrial diversification.
Addressing the Fifth Tashkent International Investment Forum, Mirziyoyev identified attracting investment to expand higher-value production chains as a priority.
"The third priority is attracting investments to expand high value-added chains," he said.
On June 2, Mirziyoyev reviewed plans to accelerate the development of the chemical industry, noting that the sector had attracted $8.3 billion in investment and commissioned 87 major production facilities in recent years. More than 60 new higher-value-added products had been introduced, while industry exports had tripled, according to the presidential press service.
The government has also set a target of at least doubling chemical production by 2030 and increasing chemical exports to $1 billion. On October 16, Mirziyoyev discussed plans for a methanol-to-olefins project in Bukhara, alongside initiatives to modernize the Bukhara and Fergana oil refineries.
These priorities provide a policy framework for Uzbekistan's discussions with Sasol, a South African energy and chemicals company with established expertise in gas-to-liquids and coal-to-liquids technologies. Potential cooperation in GTL production, base oils and coal processing could support Uzbekistan's industrial diversification while creating opportunities for technological exchange between Central Asia and Africa.
However, the proposed Sasol initiatives remain at the discussion stage, and their contribution to Uzbekistan's production and export targets will depend on whether they advance to feasibility studies, investment commitments and implementation.
Central Asia and Africa explore new industrial links
The Sasol discussions also highlight opportunities to strengthen economic cooperation between Central Asia and Africa through industrial investment, technology transfer and the development of higher-value production.
South Africa has established expertise in converting coal and natural gas into liquid fuels and chemical products, while Uzbekistan has domestic hydrocarbon resources and an existing industrial facility built around GTL technology. Cooperation between the two countries could provide a basis for exploring additional processing projects and expanding the range of products manufactured in Uzbekistan.
For Tashkent, partnerships with companies such as Sasol offer a potential route to specialized technologies and international industrial expertise. For South African companies, Uzbekistan could provide an entry point for exploring opportunities in Central Asia, depending on project economics, investment conditions and access to regional markets.
The broader significance lies in the potential to develop practical industrial ties between two regions whose economic cooperation could extend beyond conventional trade in raw materials. Technology licensing, joint ventures and local production could help translate commercial engagement into longer-term industrial links.
Coal-to-chemicals offers another avenue
The discussions with Sasol have also extended beyond natural gas.
Representatives of Uzbekistan's Ministry of Mining Industry and Geology met with a Sasol delegation led by Jacobs to discuss advanced raw material processing technologies and potential joint projects in the coal industry.
The talks followed earlier engagement between the company and Uzbekistan's Ministry of Investment, Industry and Trade. In March 2026, the ministry reported that the parties had discussed possible Sasol participation in a coal-to-olefins project, as well as further development of the Uzbekistan GTL complex.
Coal-to-olefins technology converts coal into chemical building blocks, including olefins, that can be used to manufacture plastics and other industrial products. Such production could support the development of downstream industries in Uzbekistan, potentially expanding the domestic supply of chemical inputs and creating additional opportunities for industrial investment.
Uzbekistan produced 8.9 million tons of coal in 2025, according to preliminary data published by the National Statistics Committee. The availability of domestic coal provides a resource base for considering coal-processing projects, although resource availability alone does not establish their economic viability.
A large-scale coal-chemical project would require detailed assessments of capital expenditure, water and energy consumption, environmental impacts, technology selection and demand for its products. These factors will be important in determining whether the proposal can progress from discussions to implementation.
Industrial diversification faces feedstock constraints
Uzbekistan's efforts to expand hydrocarbon processing are taking place against a changing domestic energy backdrop.
Natural gas remains an important resource for electricity generation, industrial production and household consumption. Expanding its use as a feedstock for chemical manufacturing could increase the value generated per unit of gas, but it would also require careful planning to balance industrial demand with the country's broader energy needs.
The existing Uzbekistan GTL facility provides an example of the potential for converting natural gas into higher-value products. Nevertheless, additional GTL capacity and other processing facilities would require reliable feedstock supplies, competitive production costs and sufficient demand for their output.
Coal-based chemical production presents a separate set of considerations, particularly regarding emissions, water consumption, financing and the competitiveness of the resulting products against imports.
These factors will influence whether proposed projects can deliver sustainable industrial growth and generate attractive returns for investors.
From negotiations to investment decisions
Sasol's engagement with Uzbekistan spans several stages of the country's industrial development, from the existing GTL facility to discussions on coal-to-chemicals and additional gas-processing opportunities.
The latest meetings suggest that the partnership is being considered as a platform for broader industrial cooperation rather than being limited to the supply of technology for one facility.
For Mirziyoyev's industrial diversification agenda, the next step will be translating these discussions into commercially viable projects capable of increasing domestic production, creating new supply chains and expanding export opportunities.
Key indicators to watch include the announcement of feasibility studies, investment estimates, technology licensing agreements, financing arrangements, construction schedules and confirmed production capacities.
Uzbekistan's ability to turn its natural resources into a more diversified portfolio of manufactured products will depend on the effective use of existing industrial infrastructure, reliable feedstock supplies and sustained investment in advanced processing technologies. The outcome of the discussions with Sasol could provide an indication of how far the country can extend its established GTL model into new areas of industrial production.
