News

Jun 10, 2023

Air Products to pay $1B for Uzbekistan plant that makes synthetic fuel

WFMZ.com Reporter Air Products & Chemicals has agreed to a $1 billion deal to

WFMZ.com Reporter

Air Products & Chemicals has agreed to a $1 billion deal to buy a plant in Uzbekistan that makes synthetic fuels.

The plant converts natural gas to "syngas," also known as synthesis gas. That blend of gases can be used as fuel or as a feedstock to make chemicals such as ammonia or methanol.

"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," said Air Products Chairman, Chief Executive and President Seifi Ghasemi, in a statement.

Uzbekistan is a former Soviet republic in central Asia with a population of about 35 million. The capital is Tashkent. Energy products are among its top exports.

The agreement announced Thursday was signed by Upper Macungie Township-based Air Products, the government of Uzbekistan and state-owned energy company Uzbekneftegas (UNG).

Air Products will supply oxygen, nitrogen, hydrogen and syngas under a long-term contract to UNG, and the state-owned company will provide natural gas to the plant.

"This will enable UNG to seamlessly produce low-cost, high-purity fuels that enable the Republic (UZbekistan) to meet its growing energy production and societal needs," Ghasemi said.

Cooperation with Air Products, the world's biggest producer of hydrogen, "represents a partnership that promises to unleash the enormous potential of the energy sector of the Republic of Uzbekistan," said Sidikov Bakhodirjon Bakhromovich, chairman of the board of Uzbekneftegaz JSC.

Air Products is a global industrial gases company that employs more than 21,000 people. Share in the company are traded on the New York Stock Exchange under the ticker symbol APD. The closing price Wednesday was $270.84.

In the last 52 weeks, shares have traded as high as $328.56 and as low as $218.88. The company's market capitalization (share price times number of shares outstanding) is $61 billion.

WFMZ.com Reporter

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