Air Products to Acquire Hydrogen Assets from Saneg
US industrial gases producer Air Products has agreed to acquire Saneg’s hydrogen production assets at the Fergana oil refinery in Uzbekistan for $140 million.
This strategic acquisition, Saneg said in a statement, is in line with the refinery's global modernization process and represents an important step forward in the expansion and optimization of its production capabilities and will open the opportunity for wider commercial use of hydrogen on the industrial production market in Uzbekistan. The transaction is expected to close in the fourth quarter of 2024.
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."
Seifi Ghasemi, CEO of Air Products, added: "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.”
The Fergana refinery, operated by Saneg, is currently undergoing a comprehensive modernization to enhance 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.
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.
