Tashkent, Uzbekistan (UzDaily.com) — Air Products and Saneg have announced a US$140 million asset acquisition deal in Uzbekistan, marking the beginning of industrial hydrogen production at the Ferghana Oil Refinery through the transfer of certain production assets to Air Products.

Air Products, a leading global supplier of hydrogen, has decided to acquire Saneg’s hydrogen production assets at the Ferghana Oil Refinery. This strategic deal aligns with the ongoing global modernization of the refinery and represents a significant step in expanding and optimizing its production capabilities. Importantly, the project opens up opportunities for the broader commercial use of hydrogen in Uzbekistan's industrial markets.

Saneg’s founder, Bakhtiyor Fazylov, commented, “The agreement with Air Products marks the completion of another phase in our long-term plans to modernize the Ferghana Oil Refinery in partnership with the world leader in hydrogen production. Saneg has a strong relationship with Air Products, whose commitment to advanced technology and expertise will help us achieve our goals of maximizing the potential of Uzbekistan’s oil and gas sector, while also contributing to the country's economic development. Our collaboration under this agreement will be a key factor in achieving one of the Uzbek government's top priorities—strengthening the nation’s energy security by increasing domestic hydrogen supplies.”

Seifi Ghasemi, Chairman, President, and CEO of Air Products, stated, “As the world’s largest hydrogen supplier and a leader in hydrogen fuel infrastructure, we provide safe and reliable solutions for hydrogen facilities worldwide. Our advanced technologies and expertise in hydrogen production will enhance the refinery's capabilities and support the growth of the oil and gas sector in Central Asia, helping Uzbekistan achieve greater sustainability and energy independence while contributing to a greener future for the Republic.”

The Ferghana Oil Refinery, managed by Saneg, is currently undergoing comprehensive modernization aimed at increasing its production capacity. The improvements include the implementation of a hydrocracking process and the expansion of fuel processing depth to over 92%, specifically targeting the production of Euro-5 diesel fuel and aviation kerosene.

The modernization efforts also aim to assist the Uzbek government in diversifying its energy sources through the industrialization of hydrogen production. In 2021, the Ferghana Oil Refinery selected Air Products as the supplier of two Pressure Swing Adsorption (PSA) units for hydrogen production. The construction and acquisition of hydrogen production units are key components of the refinery's entire modernization program.

The acquisition includes a Steam Methane Reformer (SMR) capable of processing 100% natural or liquefied gas. These assets, combined with the two PSA units initially supplied by Air Products, will provide a reliable foundation for hydrogen production, both for the refinery’s needs and the commercial market as a whole.

This deal, expected to close in the fourth quarter of 2024, reflects Air Products’ ongoing commitment to providing innovative and reliable solutions for the industry and further strengthens the company’s presence in the Uzbek market.