Uzbekistan advances modernization of Fergana refinery

Fergana Oil Refinery LLC (FNPZ)—now under the trust management of Jizzakh Petroleum JV LLC, a joint venture of JSC Uzbekneftegaz and Gazprom International SA subsidiary Gas Project Development Central Asia AG—has undertaken a $300-million modernization project at its 5.5-million tonnes/year refinery in Fergana City, Fergana Region, Uzbekistan.

Scheduled to run from 2020-23, the modernization and reconstruction project includes a series of works that will include replacing 30% of the refinery’s existing but obsolete units and equipment with new and modernized installations, Uzbekistan’s Ministry of Energy (MOE) said on July 20.

To date, MOE said FNPZ has let a series of contracts for work on the project to the following service providers:

• Axens Group, which is delivering licensing and design of new hydrocracking and isomerization units.
• John Wood Group PLC, which is providing front-end engineering design (FEED) on the project.
• UzLITI Engineering JV LLC, which is developing a feasibility study for the project.
• UzGASHKLITI, which is conducting engineering surveys at the project construction sites.

As of July 20, the future configuration of the Fergana refinery, the required capacity of new units for processing 2 million tpy of hydrocarbon feedstock, and the type of feedstock to be processed have been approved, according to MOE and FNPZ.

Work also has started on development of a package of design documentation for new process units and FEED, as well as design solutions for reconstruction of existing installations and energy installations, MOE said.

FNPZ also is working to implement measures aimed at introducing software at the refinery that will automate accounting, document management, and digitalization of production processes, according to MOE.

While much of the project remains in the works, MOE said an upcoming replacement of catalyst—which will be manufactured and supplied by Axens—in an existing diesel hydrotreater will enable the Fergana refinery to adjust its production of diesel fuel during fourth-quarter 2020 to comply with current European fuel-quality standards.

The work on modernization and reconstruction of the Fergana refinery comes as part of a resolution of Uzbekistan’s Cabinet of Ministers dated Feb. 7, 2020, that—though yet to be released to the public—identified priority tasks regarding efficient use of the Fergana refinery’s capacities, as well as the plant’s overall modernization, MOE said in a June 19, 2020, release.

Alongside a new light naphtha isomerization unit to equip the refinery’s production of AI 92-95 gasoline and diesel that meets Euro 5-quality standards by July 1, 2023, the project also intends to modernize production blocks to improve overall plant production quality and operating performance. The project additionally includes installation of new units for hydrocracking of vacuum distillates, according to MOE.

The overhaul of FNPZ’s refinery follows the government of Uzbekistan’s March 2019 cancellation of Jizzakh Petroleum JV’s previously announced project to build a 5-million tpy grassroots refinery under construction in the Jizzakh region of eastern Uzbekistan (OGJ Online, July 31, 2018; Sept. 14, 2017; May 1, 2017).

Jizzakh Petroleum JV LLC officially took over trust management of FNPZ to execute the Fergana refinery modernization project on Mar. 7, 2020, according to MOE.

Uzbekneftegaz also recently let a contract to SK Engineering & Construction Co. Ltd. to deliver FEED for a proposed $600-million modernization and reconstruction project at subsidiary Bukhara Oil Refinery LLC’s 50,000-b/d condensate refinery at Karaoul Bazar, located 55 km from Bukhara, in southwestern Uzbekistan, 437 km southwest of Tashkent (OGJ Online, July 10, 2020).