Industrial gas giant Air Products has signed a deal to acquire Saneg’s hydrogen production assets at the Fergana Oil Refinery in Uzbekistan.
Air Products has previously contributed to the refinery. In 2021, the company won a contract to supply two pressure swing adsorption (PSA) units for hydrogen production.
Now, its acquisition includes a steam methane reforming (SMR) unit that can process either 100% natural gas or liquid petroleum gas, in addition to its previously applied units.
Hydrogen produced at the site feeds both the refinery and the wider merchant market.
Operated by Saneg, the Fergana Refinery is currently undergoing a modernisation effort to enhance the site’s production. The modifications include the introduction of a hydrocracking processing and the expansion of fuel processing depth to over 92%.
Air Product’s renovation and acquisition of the hydrogen production units is a key component of the entire modernisation initiative.
Bakhtiyor Fazilov, founder of Saneg, described the agreement with Air Products as a “significant step forward” in the refinery’s long-term modernisation plans.
“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.”
For Air Products, the acquisition also strengthens its footprint in Uzbekistan.
The company’s President and CEO, Seifi Ghasemi, said that Air Products’ hydrogen technology and expertise will help enhance the refinery’s capabilities and support the growth of Central Asia’s oil and gas market.
“This will also aid Uzbekistan in achieving more sustainable and energy-independent operations, contributing to a cleaner future for the Republic,” he added.
In May 2023, Air Products signed a $1bn investment agreement with the Government of the Republic of Uzbekistan and Uzbekneftegaz JSC (UNG) to acquire, own, and operate a natural gas-to-syngas processing facility in Qashqadaryo Province, Uzbekistan.
Under terms of the deal, Air Products will be responsible for two large-scale air separation units, two large-scale auto-thermal reforming units, and a hydrogen production unit within the Uzbekistan GTL complex.
Read more: Air Products to acquire $1bn industrial gas complex in Uzbekistan
According to gasworld Business Intelligence, the industrial gas market in Uzbekistan generated revenues of around $53.6m in 2023.
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