Uzbekistan is set to launch its first gas-to-liquids (GTL) plant in the second half of this year, project contractor Enter Engineering told Reuters on Friday.

The $3.6 billion plant, originally expected to be launched in 2020, will allow the Central Asian nation to use its large natural gas reserve to produce more fuels such as diesel which it currently imports due to declining crude oil output and insufficient refinery capacity.

"Despite the impact of the Covid-19 pandemic in 2020 the project has implementation of planned works currently standing at 95.3 per cent and the launch ceremony is scheduled for the second half of this year," Enter Engineering said in an email.

"The construction and installation phases are now complete, with finishing and testing works about to commence."

The plant will refine 3.6 billion cubic metres of gas a year and produce 1.5 million tonnes of fuel, its management said when the project was initiated in 2018.