Air Products and Saneg Announce US$140 Million Assets Acquisition Deal in Uzbekistan
Fergana refinery is starting industrial production of hydrogen, by transferring its hydrogen production assets to Air Products.
Air Products, the world-leading hydrogen supplier, today announced that it has agreed to acquire Saneg’s hydrogen production assets at the Fergana Oil Refinery in Uzbekistan. This strategic acquisition is in alignment with the refinery's global modernization process and represents an important step forward in the expansion and optimization of its production capabilities. Importantly, the project will open the opportunity for wider commercial use of hydrogen on the industrial production market in Uzbekistan.
Saneg founder Bakhtiyor Fazilov said: "This agreement with Air Products represents another significant step forward in our long-term modernization plans for the Fergana Refinery with the world leader in hydrogen production. Saneg has a strong relationship with Air Products – their commitment and expertise will help us to achieve our goals of maximizing the potential of Uzbekistan’s oil and gas sector, while supporting our country’s economic development. The agreement will also contribute towards one of the Uzbekistan government’s main priorities, strengthening our nation’s energy security by increasing domestic supplies of hydrogen."
"As the world’s largest hydrogen supplier and a leader in hydrogen fueling infrastructure, Air Products’ solutions bring safe and reliable hydrogen to hydrogen-powered applications around the world. Our advanced technology and expertise in hydrogen production will enhance the refinery's capabilities and support the growth of the Oil and Gas industry in Central Asia. This will also aid Uzbekistan in achieving more sustainable and energy-independent operations, contributing to a cleaner future for the Republic." - said Seifi Ghasemi, Chairman, President and CEO at Air Products.
The Fergana Refinery, operated by Saneg, is currently undergoing a comprehensive modernization effort aimed at enhancing its production. These enhancements include the introduction of the hydrocracking process and the expansion of fuel processing depth to over 92%, specifically for the production of Euro-5 diesel fuel and aviation kerosene.
Amongst the refinery’s modernization goals is helping the Uzbekistan government diversify energy sources by industrializing the production of hydrogen. In 2021, the Fergana refinery selected Air Products as a supplier of two Pressure Swing Adsorption (PSA) units for the production of hydrogen. The renovation and acquisition of the hydrogen production units is a key component of the entire modernization initiative.
The acquisition includes a steam methane reforming (SMR) unit, capable of processing either 100% natural gas or LPG for high reliability operations. These assets, combined with the two PSA units originally supplied by Air Products, will ensure a reliable source of hydrogen production that can fulfill the demand of the refinery as well as the merchant market.
This acquisition which is expected to close in Q4 2024 represents Air Products' continued commitment to providing innovative and reliable solutions for the industry and further strengthens the company's presence in the Uzbekistan market.
About Air Products
Air Products is a world-leading industrial gases company in operation for over 80 years focused on serving energy, environmental, and emerging markets. The Company has two growth pillars driven by sustainability. Air Products’ base business provides essential industrial gases, related equipment and applications expertise to customers in dozens of industries, including refining, chemicals, metals, electronics, manufacturing, and food. The Company also develops, engineers, builds, owns and operates some of the world's largest clean hydrogen projects supporting the transition to low- and zero-carbon energy in the heavy-duty transportation and industrial sectors. Additionally, Air Products is the world leader in the supply of liquefied natural gas process technology and equipment, and provides turbomachinery, membrane systems and cryogenic containers globally.
The Company had fiscal 2023 sales of $12.6 billion from operations in approximately 50 countries and has a current market capitalization of approximately $60 billion. Approximately 23,000 passionate, talented and committed employees from diverse backgrounds are driven by Air Products’ higher purpose to create innovative solutions that benefit the environment, enhance sustainability and reimagine what's possible to address the challenges facing customers, communities, and the world. For more information, visit www.airproducts.com or follow us on LinkedIn, X, Facebook or Instagram.
About the Fergana Oil Refinery
Fergana Oil Refinery LLC is located in the Fergana region in Uzbekistan. The company was originally founded in 1959 to process hydrocarbons transported from the oil fields of Western Siberia. Since the end of the Soviet Union and until Saneg took charge in 2020, the plant had not been modernized.
Over the last four years, targeted investment by Saneg has led to the Fergana Oil Refinery’s revival. The plant now produces 60 different products delivered to the domestic market and 15 foreign countries. Current production capacity is 1.8 million tons per year, growing rapidly towards the plant’s potential of 2.5 million tons per year.