Saneg, in collaboration with international partners, is transforming flared gas into a valuable resource, thereby reducing energy dependency and reinforcing its position in a competitive energy market.

Source: Energynews

Uzbekistan is experiencing a decline in domestic gas production and is ramping up efforts to secure its energy supply. Saneg, a prominent independent player in the hydrocarbons sector, has initiated a strategic project focused on capturing flared gas from its production sites and integrating it into the national grid. This initiative, backed by partners like Vema (Switzerland) and ICA-Finance (Norway), represents a practical approach to utilizing local resources while navigating economic and political challenges in the industry.

Launched in March, this €14 million project has facilitated the construction of 70 kilometers of gas pipelines and the installation of 21 modular compressors in key fields such as Northern Urtabulak, Sardob, and Shurtepa. These infrastructures are capable of processing up to 70 million cubic meters of methane annually, a previously untapped resource.

Enhancing Flows and Market Opportunities

By capturing associated gas that was traditionally flared on-site, Saneg has not only minimized flaring but also converted this resource into additional revenue. The gas is now being injected into the national transmission grid, meeting the increasing local demand and reducing dependence on imports.

The installed equipment, which includes high-pressure compressors and ultrasonic flow meters, ensures reliability and precision in managing gas flow. This infrastructure is part of a comprehensive strategy aimed at stabilizing gas supplies while reducing costs tied to natural gas imports.

Complementary Initiatives for Methane Emissions

Saneg has also implemented a Leak Detection and Repair (LDAR) campaign in partnership with its European collaborators. This initiative utilizes advanced technologies, such as drones and analytical systems, to detect and seal methane leaks at its facilities. The program has successfully reduced methane emissions by 83,000 tons of CO2 equivalent each year, improving the operational efficiency of its sites.

This proactive approach to emissions management complies with Clean Development Mechanism (CDM) standards and has been registered with the German Emissions Trading Authority. This recognition enhances Saneg's visibility in European markets and streamlines interactions with international financial stakeholders.

Regional Context and Growth Strategy

In a sector characterized by declining national production, Saneg's strategy exemplifies mature, performance-driven asset management. Since 2019, the company has significantly boosted gas production from complex reservoirs, achieving 1.3 billion cubic meters in 2023. By leveraging unconventional reservoirs and fostering technical partnerships, it aims to elevate this capacity to 3 billion cubic meters in the years ahead.