The plan is to strengthen gas imports “from the north,” the route through which Uzbekistan presently receives Russian gas. The proposed augmentation is significant, targeting an increase in gas imports from the current 9 million cubic meters per day to 32 million cubic meters per day.
According to Gazeta.uz, the Uztransgaz company plans to execute a program aimed at modernizing the primary gas system to augment the volume of natural gas imports “from the north.” This initiative is outlined in the government decree detailing measures to implement Uzbekistan’s investment program for the first quarter of 2024.
Uzbekistan commenced gas imports from Russia via Kazakhstan’s territory in the northern direction starting October 7, 2023.
The allocated $500 million investment, slated for implementation between 2024 and 2030, marks the initial phase of the program. This financial injection is expected to pave the way for a substantial increase in gas volume, in line with the existing agreement with Russian energy behemoth Gazprom. While the current agreement specifies a supply of 9 million cubic meters per day, recent developments, including a volume doubling in December, emphasize the urgent need for infrastructure upgrades to accommodate heightened imports.
Foreign loans are anticipated to fund the project.
Importantly, there has been a significant change in Uzbekistan’s gas trade balance, with the nation importing more gas than it exported in 2023. This trade gap amounted to over $165 million, highlighting the critical need to enhance import infrastructure to fulfill domestic demand and bolster economic growth.
