Tashkent, Uzbekistan (UzDaily.com) – Sanoat Energetika Guruhi (SEG) is carrying out the largest modernization in the history of the Ferghana oil refinery (FNPZ) after it acquired the state in the enterprise. SEG will invest over US$400 million to the FNPZ modernization.

In the future, the plant will become the first and only enterprise producing Euro 5 class motor gasolines and lubricating oils of group II + / III according to API in Uzbekistan.

SEG acquired the state stake in the FNPZ in June 2022. It should be noted that since February 2020, SEG received the FNPZ for trust management.

The current renovation will be the largest and most complex in the history of the enterprise, built in 1959. Over the entire period of development, the plant has only partially replaced equipment and installations. In the period 1997 to 2000, a point reconstruction of the fuel block was carried out, but a complete renovation has not been carried out for more than 60 years.

After the modernization carried out under the management of SEG, the FNPZ will become the first enterprise in the Republic of Uzbekistan capable of producing Euro 5 gasoline with an octane rating higher than AI-92, and will also master the production of JET A-1 jet fuel, base and motor oils according to modern standards (II and group III). The total depth of processing of raw materials will be at least 92% (today’s value does not exceed 87%). 

Taken together, new production capacities and access to new product markets will double the amount of raw materials processed at the FNPZ and bring this value up to 2 million tons of oil and gas condensate per year. In addition, the modernization will have a significant impact on the environmental aspects of the refinery, and will bring FNPZ closer to world standards in this area.

The modernization is planned to be completed by the end of 2023. Investments that are planned to be attracted to the project of large-scale expansion of production will exceed US$400 million. 

To date, with the involvement of the EPC contractor, Enter Engineering, earthworks have already been completed and construction work is underway on such new units as a steam boiler plant with a chemical water treatment plant, a hydrocracking unit, hydrogen production and pressure swing absorption, as well as new buildings for the central control room and laboratory, tanks for the storage of raw materials and products. 

In addition, as part of the launch of the modernization project, SEG has already attracted more than US$160 million to upgrade the FNPZ. Licensing and engineering agreements were concluded with Axens (France), Wood (Italy), a FEED (basic project) was developed for the modernization of the plant with the approval of the configuration of the hydrocracking plant, a feasibility study of the project was developed and approved, the catalyst was replaced at the hydrodesulfurization unit, 60% of 3D models of new plants have been developed, and orders have been placed and advance payments have been made for long-term equipment.

“Our company faces a large-scale task - to provide the residents of Uzbekistan with high-quality fuel and oils from our own oil. That is why we are implementing advanced production stimulation technologies in our production sector. The modernization of the FNPZ is inextricably linked with this task. Today we started the largest program of its technical re-equipment in the history of the plant. A number of installations that have stood for years and have long required demolition will be demolished. In their place, new installations will be integrated into the production chain of the enterprise, which produce products that are in demand on the market. This includes modern gasoline, which is not yet produced in Uzbekistan, modern oils, and other types of products. This project will have a significant impact on the development of Uzbekistan, and some types of products will compete with many foreign players in foreign markets,” said Tulkin Yusupov, Executive Director of SEG.

FNPZ was put into operation in January 1959. During the Soviet period, the enterprise was loaded with raw materials from the fields of Western Siberia, the plant was involved in the all-Soviet system of raw materials processing. The enterprise mainly processed crude oil from Samotlor and deposits of Central Asia. From 1991 to 2020, the plant was practically not subjected to serious reconstruction. The plant’s workload prior to the transfer to SEG’s trust management did not exceed 1 million tons per year.