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Uzbek O+G producer Saneg implements methane emissions reduction project

Thursday, May 16, 2024

Saneg becomes first in Central Asia to register methane emissions program for trading

Tashkent, Uzbekistan, May 15, 2024 - The leading Uzbek oil and gas company JV Sanoat Energetika Guruhi LLC (Saneg) has become the first company in Central Asia to implement a methane emissions reduction project at its production assets and to register with the Emissions Trading Agency (DEHSt), which is governed by the German Ministry of the Environment.

The company has just completed the first phase of a major technical upgrade program to its infrastructure facilities, resulting in a significant reductions in methane emissions.

The work was carried out as part of a joint decarbonization project using advanced leak detection and remediation (LDAR), in close cooperation with VEMA SA (Switzerland) and ICA-Finance AS (Norway), organisations that support the reduction of methane and other greenhouse gas (GHG) emissions in the energy sector.

Saneg founder Bakhtiyor Fazilov said:

'This decarbonisation project contributes to a significant and irreversible reduction in carbon dioxide emissions by more than 83,000 tons per year, equivalent to the decommissioning of around 20,000 vehicles. In addition, this major project makes it possible to improve the efficiency of Saneg's emissions monitoring and reduce the negative impact on the environment. We have achieved much but there is always room for improvement, and we are targeting further gains before the end of 2024.'

Mr Fazilov added: 'This is a very significant event in the history of our company. Obtaining LDAR certification for our oil and gas production facilities, confirms Saneg's commitment to meeting the highest standards of environmental responsibility and technological progress.

'This joint project with Vema Carbon and ICA Finance reflects our commitment to sustainable development and reducing our impact on the environment.'

The project was developed within the Clean Development Mechanism (CDM) methodology established by the European Fuel Quality Directive (FQD) and funded by each of the three partners.

By the end of 2024, during the implementation of further initiatives, Saneg expects to be able to reduce greenhouse gas emissions by approximately 410,000 tons of CO2 equivalent per year.

Saneg is the largest private oil and gas producer in Uzbekistan, accounting for 80% of oil production and 5% of gas production in the country.

VEMA SA has more than 25 years of experience in developing projects aimed at reducing greenhouse gas emissions and introducing energy efficient technologies.

Speaking at a ceremony to mark the achievement, Mikhail Partykevich, director of VEMA SA, said:

'This award symbolizes the close collaboration with Saneg and demonstrates its commitment to sustainable development.'

ICA-Finance AS has over 20 years of experience in managing CDM and UER projects throughout the entire life cycle of carbon units, with partners such as national and non-state oil and gas companies.

As part of the project, about 200 objects with leaks were discovered and repaired on the company's territory in Karshi, Mubarek and Andijan. To detect and measure the volume of leaks, modern analytical systems based on unmanned aerial vehicles were used, among other new systems and apparatus.

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