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Uzbekneftegaz announces tender to modernise Fergana refinery

Business Materials 17 July 2012 14:29 (UTC +04:00)

Uzbekistan, Tashkent, July 17 /Trend D.Azizov/

The National Holding Company (NHC) Uzbekneftegaz is for the fourth time, announcing a tender for the audit and development of a preliminary feasibility study for the modernisation and reconstruction of existing process units of Fergana refinery in order to release petroleum products that meet the requirements of Euro-3 and above.

Under the terms of the tender, the starting cost of the work is $795,000. The winner must develop ways to optimise existing process units of the plant, as well as schemes to increase the yield of light petroleum products to 95 per cent. Bids will be accepted until August 13, 2012. The tender results will be announced at the end of the third quarter of 2012, followed by a tender to choose the main contractors.

The upgrading is scheduled to begin in 2013. According to preliminary data, it may take about a year. It is assumed that the plant will start producing high-octane gasoline in 2014.

Earlier, tenders for the development of a preliminary feasibility study were announced three times in 2010-2011, but were considered invalid due to lack of competitive bids.

Financing of the project with an estimated cost of $100 million will be implemented from NHC Uzbekneftegaz own funds and through the credits of the Fund for Reconstruction and Development of Uzbekistan.

The Ferghana refinery was commissioned in 1959 and produces about 60 kinds of petroleum products. The design capacity is 5.5 million tons of oil a year.

At the moment, three oil-processing plants - Bukhara, Fergana and Altiarik, deal with oil and gas condensate processing in Uzbekistan.

Bukhara's refinery produces high-quality petrol, air kerosene and diesel fuel. The processing capacity is 2.5 million tons of oil annually. The Fergana and Altiarik plants produce fuel-oil products. Their processing capacity is 5.5 million and 3.2 million tons of oil.

From Jan.1 2010 the import of new and old buses and Lorries with leaded petrol and diesel engines is banned in Uzbekistan. The level of these vehicles toxicity does not correspond to the Euro-3 ecological requirements.

Uzbekneftegaz is a monopoly on the Uzbek oil and gas market. In 2011, it reduced oil and gas production by 5.8 per cent compared to the same period of 2010. Natural gas production declined by 4.4 per cent - to 63.04 billion cubic meters.

Gasoline production fell last year by 6.6 per cent up to 1.308 million tons, kerosene by 11.2 per cent, to 331.3 thousand tons, diesel fuel by 6.5 per cent, to 1.052 million tons, fuel oil by the 13.8 per cent, to 276.6 thousand tons, liquefied hydrocarbon gas by 1.3 per cent, to 258.5 thousand tons and bitumen by 16.9 per cent, to 164.6 thousand tons.

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