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Air Products to Acquire, Own and Operate Industrial Gas Complex at Uzbekneftegaz's Advanced Gas-to-Liquids Facility in Uzbekistan for US$1 Billion

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LEHIGH VALLEY, Pa., May 25, 2023 /PRNewswire/ -- Air Products (NYSE:APD) today announced it has signed an investment agreement with the Government of the Republic of Uzbekistan and Uzbekneftegaz JSC ("UNG") to acquire, own and operate a natural gas-to-syngas processing facility in Qashqadaryo Province, Uzbekistan for US$1 billion.

The natural gas-to-syngas industrial complex is an integral part of state-owned energy company Uzbekneftegaz JSC's multi-billion gas-to-liquid (GTL) facility―one of the most advanced energy plants in the world―producing 1.5 million tonnes per year of high value-add synthetic fuels for domestic use and potentially export.

Under the purchase agreement―which is fully aligned with Air Products' leading on-site business model―Air Products will acquire, own and operate two large-scale air separation units, two large-scale auto-thermal reforming units, and a hydrogen production unit within the Uzbekistan GTL complex and supply oxygen, nitrogen, hydrogen and syngas under a long-term, take-or-pay/fixed fee contract to UNG. UNG will supply the feedstock natural gas and utilities and offtake all products.

Commenting on the agreement, Air Products' Chairman, President and CEO Seifi Ghasemi said,
"Air Products is proud to be deploying our knowledge, experience and technology to help nations around the world access and maximize their abundant energy sources more sustainably. With this strategic acquisition in Uzbekistan, a high-growth environment underpinned by strong government support, we will bring our best-in-class operational and supply competencies to bear. This will enable UNG to seamlessly produce low-cost, high-purity fuels that enable the Republic to meet its growing energy production and societal needs. We look forward to building on this long-term, sustainable partnership and are excited about future opportunities in Uzbekistan and the Central Asia region."

"Cooperation between the Uzbekistan GTL plant and Air Products is of great importance as it represents a partnership that promises to unleash the enormous potential of the energy sector of the Republic of Uzbekistan," commented Sidikov Bakhodirjon Bakhromovich, the Chairman of the Board of Uzbekneftegaz JSC. Using a combination of Uzbekneftegaz's experience in processing natural gas into high value-added products and Air Products' leadership in the implementation of mega projects, we are starting to work together to achieve common creative goals, such as increasing production efficiency, reducing the final cost of products and reduction of harmful emissions. We are optimistic about the benefits this cooperation will bring both to the company and our Republic as a whole."

For more background information about the project: https://www.airproducts.com/campaigns/uzbekistan-gtl-facility  

About Air Products

Air Products (NYSE:APD) is a world-leading industrial gases company in operation for over 80 years focused on serving energy, environmental, and emerging markets. The Company has two growth pillars driven by sustainability. Air Products' base business provides essential industrial gases, related equipment and applications expertise to customers in dozens of industries, including refining, chemicals, metals, electronics, manufacturing, and food. The Company also develops, engineers, builds, owns and operates some of the world's largest industrial gas and carbon-capture projects, supplying world-scale clean hydrogen for global transportation, industrial markets, and the broader energy transition. Additionally, Air Products is the world leader in the supply of liquefied natural gas process technology and equipment, and globally provides turbomachinery, membrane systems and cryogenic containers.

The Company had fiscal 2022 sales of $12.7 billion from operations in over 50 countries and has a current market capitalization of over $60 billion. More than 21,000 passionate, talented and committed employees from diverse backgrounds are driven by Air Products' higher purpose to create innovative solutions that benefit the environment, enhance sustainability and reimagine what's possible to address the challenges facing customers, communities, and the world. For more information, visit airproducts.com or follow us on LinkedIn, Twitter, Facebook or Instagram.

About Investment in Uzbekistan

Today, Uzbekistan represents an attractive investment proposition given its vast and diverse natural resources, including its position as one of the world's top producers/exporters of natural gas, gold, copper, and more. The country has ambitious development plans and supportive government frameworks focused on advancing its energy sector and driving socio-economic development.

Within the Uzbekistan GTL project, Air Products will deploy its financial capacity, core technological and operational know-how, and on-site sale of gas model to deliver high reliability and efficiency. As economic and industrial growth expands in Uzbekistan, Air Products continues to explore opportunities to support the country's sustainability and independence goals as it leverages its abundant natural resources.  

About Uzbekneftegaz JSC 

Uzbekneftegaz JSC is a company engaged in producing, storing, processing, and selling oil and gas. It is one of the largest state-owned companies in Uzbekistan. The country ranks 11th in the world in natural gas production, and Uzbekneftegaz JSC is the largest gas-producing company in Uzbekistan. In 2022, it was accountable for approximately 61% (around 32 billion cubic meters) of all of the country's gas production, which totaled about 52 billion cubic meters of gas.

The activities of the oil and gas industry cover the entire chain of oil and gas operations, from geological exploration, development of oil and gas fields, drilling, and production, to processing hydrocarbons, production of oil products, oil and gas, and chemical equipment, and supplying consumers with oil products.

Cautionary Note Regarding Forward-Looking Statements: This release contains "forward-looking statements" within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's expectations and assumptions as of the date of this release and are not guarantees of future performance.  While forward-looking statements are made in good faith and based on assumptions, expectations and projections that management believes are reasonable based on currently available information, actual performance and financial results may differ materially from projections and estimates expressed in the forward-looking statements because of many factors, including risk factors described in our Annual Report on Form 10-K for the fiscal year ended September 30, 2022.  Except as required by law, we disclaim any obligation or undertaking to update or revise any forward-looking statements contained herein to reflect any change in the assumptions, beliefs or expectations or any change in events, conditions or circumstances upon which any such forward-looking statements are based.

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