Air Products and Saneg Seal $140M Hydrogen Asset Acquisition in Uzbekistan

Air Products, a global leader in hydrogen supply, announced its agreement to acquire Saneg's hydrogen production assets at the Fergana Oil Refinery in Uzbekistan. The acquisition not only enhances the refinery's operational efficiency but also paves the way for broader commercial use of hydrogen in Uzbekistan's industrial market, positioning the country as a key player in the hydrogen economy.

Saneg founder Bakhtiyor Fazilov emphasized that the partnership with Air Products marks a crucial advancement in the Fergana Refinery's modernization journey, aligning with their long-term goals. He highlighted the strong relationship between Saneg and Air Products, noting that the latter’s commitment and expertise are vital in unlocking the full potential of Uzbekistan's oil and gas sector. This agreement not only aims to bolster the country's economic development but also addresses a key government priority by enhancing energy security through increased domestic hydrogen production.

Seifi Ghasemi, Chairman, President, and CEO of Air Products, highlighted the company's position as the world’s largest hydrogen supplier and a leader in hydrogen fueling infrastructure. He emphasized that Air Products' advanced technology and expertise in hydrogen production will significantly boost the Fergana Refinery's capabilities, fostering growth in Central Asia's oil and gas sector. This partnership is expected to help Uzbekistan achieve more sustainable and energy-independent operations, aligning with the Republic’s vision for a cleaner and greener future.

The Fergana Refinery is implementing a comprehensive modernization program to enhance operational efficiency and increase production capacity. Key upgrades include the integration of advanced hydrocracking technology and the enhancement of fuel processing capabilities, targeting over 92% depth to produce Euro-5 standard diesel fuel and aviation kerosene.

A core objective of this modernization is to support the Uzbekistan government's strategy to diversify energy sources by scaling up hydrogen production. In line with this goal, Fergana Refinery partnered with Air Products in 2021 to supply two Pressure Swing Adsorption (PSA) units, critical for hydrogen production. These hydrogen production units are pivotal to the refinery's broader modernization efforts.

The initiative also includes the acquisition of a state-of-the-art steam methane reforming (SMR) unit, designed to process either 100% natural gas or LPG, ensuring high reliability in operations. This, coupled with the PSA units provided by Air Products, will secure a stable and dependable hydrogen supply, meeting both the refinery’s needs and the broader merchant market.

This acquisition, slated for completion in Q4 2024, highlights Air Products' unwavering dedication to delivering cutting-edge, reliable solutions tailored to the energy sector's evolving needs. By expanding their technological footprint and capabilities in Uzbekistan, Air Products not only reinforces its market position but also plays a pivotal role in supporting the country's energy diversification and modernization initiatives. This strategic move aligns with their broader vision of fostering sustainable industrial growth in key global markets.