Saneg Launches Program to Halt Methane Leaks from Uzbekistan Oil Production

With Swiss and Norwegian Partners, Biggest Privately Held Uzbek Producer Using Modernization to Help the Environment.

Sanoat Energetika Guruhi LLC (Saneg), responsible for 80 per cent of Uzbekistan oil production, has announced the successful completion of a first phase of an advanced Leak Detection and Repair (LDAR) program reducing carbon dioxide emissions by 83,000 tonnes annually, the equivalent of the retirement of 20,000 cars.

The decarbonization project is being implemented in close cooperation with the Swiss company VEMA S.A. and the Norwegian company ICA-Finance AS.

Saneg CEO Tulkin Yusupov said:

"Our joint decarbonization project of the oil and gas complex is not just a sign of technological progress, but also a vivid example of how industry can effectively combine high production performance with care for the environment,"

Arne Peder Blix, CEO of ICA-Finance AS, said:

"This is truly a joint success story that we are very happy to share....We intend to implement more projects in Uzbekistan as part of our commitment to provide the region with effective, high-quality emission reductions."

Mikhail Partikevich, Director of VEMA SA, said:

"For a quarter of a century, our company has been actively engaged in energy efficiency projects to reduce greenhouse gas emissions, including methane, and we are proud to be able to apply our accumulated skills and many years of experience in reducing methane leaks.”

Apart from reducing leaks, the project also increases the efficiency of emissions monitoring and minimizes its negative impact on the environment. Financed from the participants' own funds, the project received further compensation through the implementation of Production Emission Reduction Units obtained and was developed on the basis of the Clean Development Mechanism (CDM) methodology under the European Fuel Quality Directive (FQD).

As a result of close cooperation and mutual exchange of knowledge and experience, the three companies successfully implementing the LDAR project seek to identify and eliminate methane leaks across Saneg’s production system. The companies are developing four more projects.

VEMA’s Mr Partikevich said, “We plan to use the experience gained in the future, and we hope to implement a number of similar projects in the oil and gas industry of Uzbekistan, which in turn will help the country improve environmental standards."

VEMA S.A. has more than 25 years of experience in the development of projects aimed at reducing greenhouse gas emissions and introducing energy-efficient technologies.

ICA-Finance AS has more than 15 years of experience in managing CDM and UERs projects throughout the life cycle of carbon units with partners such as National and Independent Oil and Gas Companies.

According to Saneg’s Mr Yusupov, "It is important to note that our commitment to sustainability reflects global trends, confirmed by the accession of the Republic of Uzbekistan to the Global Methane Commitment at COP-28 in Dubai. Uzbekistan has expressed a clear intention to reduce methane emissions by 30% by 2030, underscoring the importance of joint efforts to combat climate change. We are excited to be part of this global movement and look forward to continuing to innovate in our industry, contributing to the preservation of the planet for future generations."