Air Products, a leading industrial gas giant, has recently signed a significant $1 billion investment agreement with the Government of the Republic of Uzbekistan and Uzbekneftegaz JSC (UNG).
The agreement entails the acquisition, ownership, and operation of a natural gas-to-syngas processing facility in Qashqadaryo Province, Uzbekistan. This move highlights Air Products’ commitment to expanding its presence in Uzbekistan and the Central Asia region, capitalizing on long-term sustainable partnerships and future opportunities.
The Uzbekistan GTL Complex:
The natural gas-to-syngas industrial complex is an essential component of Uzbekneftegaz JSC’s gas-to-liquid (GTL) facility, a multi-billion-dollar project aiming to produce 1.5 million tonnes per year of high-value synthetic fuels for both domestic use and potential export. By participating in this venture, Air Products aligns itself with Uzbekistan’s strategic energy goals and establishes a strong partnership with the state-owned energy company, Uzbekneftegaz JSC.
Key Components of the Facility:
Under the terms of the agreement, Air Products will be responsible for the installation and operation of two large-scale air separation units, two large-scale auto-thermal reforming units, and a hydrogen production unit within the Uzbekistan GTL complex. These units are crucial for the conversion of natural gas into syngas, which serves as a versatile feedstock for the production of various value-added chemicals and fuels.
Supply and Offtake Agreement:
Air Products has also entered into a long-term take-or-pay/fixed fee contract with UNG, wherein UNG will supply the required feedstock natural gas and utilities for the facility. In return, Air Products will provide oxygen, nitrogen, hydrogen, and syngas to UNG under this agreement. This collaboration ensures a mutually beneficial arrangement, allowing for the efficient utilization of resources and the optimal production of syngas and other industrial gases.
Strategic Significance:
The partnership between the Uzbekistan GTL plant and Air Products holds great importance for the energy sector of the Republic of Uzbekistan. By combining the expertise of both entities, this collaboration has the potential to unlock the enormous energy potential in the region. Air Products’ established presence in Central Asia, including the opening of an office in Tashkent, Uzbekistan, in 2019, underscores its commitment to meeting the growing demand for industrial gases in the country.
Future Opportunities:
Air Products’ investment in the natural gas-to-syngas facility positions the company to capitalize on future opportunities in Uzbekistan and the wider Central Asia region. The strategic location of Uzbekistan and its abundant natural gas resources make it an attractive destination for investment in the energy and chemical sectors. Air Products, with its global expertise in industrial gas production and distribution, is well-positioned to contribute to the sustainable development of the energy sector in Uzbekistan, fostering economic growth and technological advancement.