Uzbekistan to Start Industrial Production of Hydrogen

Sanoat Energetika Guruhi (Saneg), one of the largest private oil and gas companies in Uzbekistan, announced on August 21 that the Ferghana Oil Refinery is to produce industrial hydrogen by transferring its related assets to Air Products, a world-leading industrial gases company. The Ferghana Refinery is currently undergoing comprehensive modernization to both enhance its output and help the government of Uzbekistan diversify energy sources by industrializing hydrogen production. Saneg's operations at the refinery currently account for about 80% of the country’s oil production and 22% of its proven gas reserves and the acquisition its industrial hydrogen assets for $140 million by Air Products, promises to widen the commercial use of the product in Uzbekistan. Saneg's founder Bakhtiyor Fazilov commented: "This agreement with Air Products represents another significant step forward in our long-term modernization plans for the Ferghana Refinery with the world leader in hydrogen production… and contribute to one of the Uzbekistan government’s main priorities, strengthening our nation’s energy security by increasing domestic hydrogen supplies." Reporting on the transaction, Seifi Ghasemi, Chairman, President, and CEO at Air Products, stated: "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 worldwide. Our advanced technology and expertise in hydrogen production will enhance the refinery's capabilities and support the growth of Central Asia's oil and gas industry. This will also aid Uzbekistan in achieving more sustainable and energy-independent operations, contributing to a cleaner future for the Republic."

Kyrgyz-Turkish Oil Refinery Nears Completion in South Kyrgyzstan

On July 8, Minister of Energy of the Kyrgyz Republic, Taalaibek Ibraev inspected the construction of the Kyrgyz-Turk K-OilGas oil refinery in the village of Kok-Talaa in the southern Batken region. An agreement between Kyrgyztransneftegaz (Kyrgyzstan) and Kyrgyz-Turk K-OilGas (Turkey) on the joint development of the North Sokh and Chongara Galcha oil fields was signed back in March 2023. According to General Director of Kyrgyztransneftegaz Aibek Chodonov, over 90% of the refinery’s construction has now been completed, and preparatory work is currently underway at four oil wells. The commission of the refinery is scheduled for the end of September. Investment in the project amounts to $91 million, and once in operation, the  refinery will have a daily capacity of 500 tons of oil products. At present, the refinery has 51 employees, including 10 Turkish specialists and 41 local citizens, with 150 new jobs on the horizon from October. Kyrgyzstan has some oil deposits in the south of the country but today, imports almost all of its oil products (gasoline and diesel) from Russia.