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    Uzbekistan

    Uzbekistan's 50% drop in gas exports to China sparks concerns on energy

    Uzbekistan's 50% drop in gas exports to China sparks concerns on energy

    Uzbekistan has recorded a second consecutive month of reducing natural gas exports to China, as per the data from the Chief Customs Administration of the People's Republic of China. The decrease in gas supplies to the Middle Kingdom has resulted in a substantial decline in annual terms.

    Uzbekistan's 50% drop in gas exports to China sparks concerns about global energy role
    Photo: Uzbekistan's 50% drop in gas exports to China sparks concerns on energy
    Источник

    In September, Uzbekistan's monthly gas exports to China amounted to $41.62mn, nearly doubling the August figures. However, when compared to July, gas supplies saw a drastic reduction of 2.2 times. This downward trend has been consistent for the past two months, raising questions about Uzbekistan's future role in the global energy market.

    For the first nine months of 2023, Uzbekistan's total natural gas exports to China amounted to $412.19mn, marking a 50% decrease compared to the same period in 2022. This significant decline has raised concerns among stakeholders and experts about the sustainability of Uzbekistan's gas export strategy.

    While Uzbekistan's gas exports have been on the decline, Turkmenistan has maintained its position as the leading supplier of natural gas to China, contributing $7.41bn in gas exports during the first nine months of this year. Russia closely follows as the second-largest supplier, with nearly doubled gas exports amounting to $4.98bn. Myanmar and Kazakhstan are also prominent players in the Chinese natural gas market, with exports of $1.21bn and $949mn, respectively.

    Uzbekistan's 50% drop in gas exports to China sparks concerns on energy
    Photo: Uzbekistan's 50% drop in gas exports to China sparks concerns on energy
    Source: Daryo

    Uzbekistan has gradually shifted from being a gas exporter to an importer in recent years. In September, the country witnessed a surge in gas imports from Turkmenistan, signifying a shift in its energy dynamics. Additionally, gas exports from Russia to China have seen an increase since October, facilitated by the "Central Asia - Center" pipeline system that traverses Kazakhstan.

    The decline in Uzbekistan's gas exports to China could be attributed to a variety of factors, including changes in market dynamics, shifts in energy strategies, and a greater emphasis on domestic gas consumption. 

    Earlier Daryo reported a significant development for the energy industry. A tripartite agreement was signed on November 3, in Moscow, with the aim of increasing the volume of petroleum raw material supplies from the Russian Federation to Uzbekistan. Under this agreement, the supply of petroleum raw materials is set to increase to 1 mn tons in 2024 and subsequent years. 

     

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    07.11.2023, 17:54   Comments (0)   1572
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