The Fergana refinery in Uzbekistan will start up a hydrogen generator to supply gas to a hydrocracker currently under construction. The new units are part of an ongoing refinery modernization to improve output quality and volume.
Fergana’s owner Sanoat Energetika Guruh (Saneg) is chasing buyers in Europe, where demand for API Group I base oils is still an economically viable proposition, despite a prolonged period of rationalization in Europe’s Group I production capacity.
When the hydrocracker in Fergana is commissioned in 2026, operators expect to produce API Group I, II+ and III base oils and reach production capacity of 120,000 metric tons per year. This is in addition to jet fuel and diesel.
Saneg also produces finished lubricants at its Saneg Oil Italy facility in Bari, a port city on Italy’s Adriatic coast.