Page 13 - FSUOGM Week 01 2023

FSUOGM PROJECTS & COMPANIES FSUOGM

Saneg leads drive for Uzbekistan's

self-sufficiency in energy

UZBEKISTAN IN November of this year, Uzbekistan's Sanoat border in the historic, fertile Fergana Valley,
Energetika Guruhi and its Ferghana Oil Refinery Fergana's oil refinery plant is undergoing a pro-
Saneg is leading (FNPZ) began to operate under a single brand cess of renewal, with so far $58mn having been
Uzbekistan's drive to known as Saneg. Saneg is Uzbekistan's largest attracted for this project. The plant is looking to
energy self-sufficiency. private oil and gas company with a net profit of introduce a “Euro 5” standard for all products
$55mn a year and has projects in the regions of manufactured at the plant. The plant currently
Tashkent, Karshi, Mubarek and Andijan. Saneg produces everything from kerosene to heating
has the goal of using its own locally produced oil to diesel fuel. The plant’s modernisation is also
raw materials to produce refined products to sell a truly national project, with companies from
mostly to the Uzbek domestic market. Saneg fea- across Europe and North America involved in
tures centrally in Uzbekistan's plan to increase oil the process. French company Axens helps with
production, with Saneg looking to extract 2mn hydrocracking and isomerisation, British com-
tonnes by 2030 from its current 155mn tonnes pany Argus helps with marketing, US companies
of reserves, with the number of reserves also set such as Aspen Tech help with the software and
to increase an extra 6.4mn tonnes by 2030. Since Russian company ONHP has developed many
the implementation of the programme, daily of the designs for the new installations.
production has risen by 1,230 tonnes to 1,700 The main goal of the refinery’s modernisation
tonnes, with over 40 international companies is to process around 2mn tonnes per year (tpy)
working on Saneg fields. of raw materials, up from the current 1mn tpy.
At the heart of Saneg's plans for its expanded A major goal of the plant, in line with Saneg’s
gas production is the newly discovered Yongi core philosophy, is to source the raw materials
Uzbekistan oilfield, located in the country's primarily from Uzbek sources, whose percentage
central Navoyi region. The 728-square km amongst raw materials supplied to the plant is
field is thought to contain 100mn tonnes of increasing. This target is proving elusive, how-
bitumen, according to preliminary findings, ever, with the plant still being some years away
with 32 wells currently in operation and more from being able to achieve it, according to refin-
planned. The Yongi discovery is in contrast to ery director Khabib Latipov, who mentioned
some people’s belief that Uzbek oil reserves the refinery still uses Kazakh and Russian oil.
have been exhausted, as the oil here is still quite In addition to sourcing most of its raw materials
difficult to access, however, as most of Uzbeki- from Uzbek sources, the refinery’s products are
stan’s easy to find oil has indeed been used up. directed primarily towards satisfying the ever
Of Saneg’s own 155mn tonnes of reserves, 48% growing Uzbek market, a nation with a young
are currently being explored, with 52% under and growing population. Latipov mentioned that
development. while “the refinery does supply foreign countries
While Saneg is explicit in its intention to with over 50 products, this is unlikely to further
"hand the native land wealth" of Uzbekistan back increase, due to the ever growing Uzbek domes-
to its people, it is also open to adapting to the use tic market, [where] owing to its growing popula-
of foreign technology, particularly American tion and expanding economy, energy demand is
well survey technology, and is the first Central growing.” Latipov also mentioned that the gov-
Asian country to do so. US company Downhole ernment is considerably less involved in price
Vision's video-logging technology allows for regulation than before, with the stock market
reduced cost and increased safety during well- now doing most of the regulating.
bore inspections. The implementation of the Saneg’s mission to source local raw materi-
new well technology is helping to "reduce the als to feed the domestic market comes at a time
risk of well accidents by up to 95%", according when countries such as Uzbekistan are facing
to Saneg's chief energy, Sergey Ryabkov. Uzbek- gas shortages. Uzbekistan has so far resisted calls
istan is now also in the process of creating a new by Moscow to create a tripartite gas union with
research and development institute for its oil Russia and Kazakhstan and is moving towards
industry. zero exports of gas as its population booms and
The new oil discoveries in Yongi Uzbekistan it struggles to always meet its own domestic
will help to fuel Saneg's ambitious plans to mod- demand. Across the globe the nations are striv-
ernise its Fergana oil refinery plant. Originally ing to be self-sufficient in food and energy, and
founded during the Russian Empire in 1868, and Saneg hopes to be the lynchpin in Tashkent’s
located just a stone's throw away from the Kyrgyz efforts to do so. ™

Week 01 04•January•2023 www. NEWSBASE .com P13