21-08-2024

Fergana refinery transfers its hydrogen production assets to Air Products

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