#Energy #Uzbekistan #Tashkent #Saneg

Transforming Flares into Fuel: Saneg's Vision for Uzbekistan's Energy

In the quest for a sustainable energy future, the shift from wasteful practices to efficient solutions is vital. Saneg, Uzbekistan's largest independent oil and gas producer, is pioneering such initiatives by converting flared gas from oilfields into a vital energy source. This innovative approach not only addresses energy shortages but also aims to significantly reduce the ecological impact associated with flaring.

Uzbekistan, historically a key natural gas supplier during the Soviet era, now faces declining production rates. This decline results in a growing dependence on imports to sustain the country's economic momentum. Amidst this scenario, addressing the environmental concerns linked to the oil and gas sector has become increasingly urgent. Saneg's recent projects encapsulate the dual objectives of enhancing energy security while ensuring environmental integrity.

A Step Towards Sustainability
In March 2024, Saneg launched an ambitious project valued at €14 million, collaborating with key international partners, including Vema from Switzerland and ICA-Finance from Norway. This initiative focuses on processing associated gas produced during oil extraction, redirecting it into the national transmission grid instead of allowing it to be flared. By utilizing this gas, Saneg has set a target to handle a staggering 70 million cubic meters of methane annually.

Already, significant progress has been made. The company has constructed 70 km of gas pipelines and installed 21 modular compressor units across the Northern Urtabulak, Sardob, and several other oilfields. As a direct result of their efforts, Saneg has extinguished six gas flares, effectively cutting its annual carbon emissions by roughly 140,000 tonnes of CO2.

Technological Innovations at Play
Saneg's CEO, Tulkin Yusupov, highlighted the importance of applying advanced technologies to achieve these objectives. The newly installed compressors work at varying pressures—from as low as 5 to as high as 40 atmospheres—ensuring efficient gas flow and management. Coupled with ultrasonic gas flow meters, these technologies provide precise measurements crucial for monitoring gas output.

The collaboration with Vema and ICA-Finance involves not only the project funding but also pre-project studies to ensure that best practices are employed throughout. The Green Development Research Company (GRDC) has played a vital role in the technical documentation, while Saneg oversees the construction efforts.

Building on this groundwork, Saneg has set its sights on the next phase at the Shirkent field, where they plan to assess additional flaring capacities and explore further technical solutions to enhance gas utilization.

Taking Aim at Methane Emissions
In addition to this groundbreaking project, last year, Saneg commenced a leak detection and repair (LDAR) initiative, utilizing modern analytical systems and drone technology to minimize gas leakages and emissions. This effort has resulted in the prevention of over 83,000 tonnes of CO2-equivalent methane emissions annually—akin to removing 20,000 vehicles from circulation. Methane, despite its potency as a greenhouse gas, has a shorter life in the atmosphere, making immediate action critical in the battle against climate change.

Saneg has achieved a commendable milestone by becoming the first company in Central Asia to formalize a methane emissions reduction program with Germany's Emissions Trading Authority, adhering to the methodologies established by the Clean Development Mechanism (CDM).

A Growing Force in Oil and Gas
Since securing rights to 103 previously state-owned oilfields in 2019, Saneg has emerged as a substantial player within Uzbekistan's energy sector. The company has revitalized oil production from aging reservoirs while increasing its natural gas output from these fields to nearly 1.3 billion cubic meters—an impressive increase given the national decline in gas production.

With aspirations to triple this production to 3 billion cubic meters, Saneg plans to tap into tight gas reservoirs underlying conventional formations, potentially propelling the company's growth further.

In conclusion, Saneg is not just addressing an energy crisis; it is leading Uzbekistan toward a more sustainable, emissions-conscious future. In combining technological innovation with a commitment to environmental stewardship, the company stands at the forefront of shaping the nation’s energy landscape, promoting a cleaner and greener energy vision for all.