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    Uzbekistan

    Uzbekistan plans to spend $470 mn to increase gas purchases from Russia

    Uzbekistan plans to spend $470 mn to increase gas purchases from Russia

    Uztransgaz, the operator of Uzbekistan's gas transportation system, is set to embark on a significant modernization initiative aimed at enhancing the country's gas imports from Russia. The decision was disclosed in the investment program of the Cabinet of Ministers on February 15.

    Photo: Uztransgaz, the operator of Uzbekistan's gas transportation system, is set to embark on a significant modernization initiative aimed at enhancing the country's gas imports from Russia.
    Source: Global Look Press

    The initial project budget is projected at $470 mn, with implementation scheduled to commence from 2024 and continue until 2030 and will focus on upgrading the main gas pipelines to facilitate increased imports of natural gas from Russia. 

    Financing for the modernization initiative will be sourced through foreign loans obtained from international financial institutions.

    The decision to prioritize gas import enhancements comes in the wake of a significant energy crisis experienced by Uzbekistan during the winter months, attributed to extreme cold weather conditions. Government reports indicated a shortfall of up to 20 mn cubic meters of gas per day during peak demand periods across the country. President Shavkat Mirziyoyev admonished officials for inadequate preparation ahead of the winter season, highlighting the need for robust measures to address energy resource deficits and ensure uninterrupted supply to consumers.

    In response to the energy crisis, Uzbekistan embarked on a multifaceted strategy to augment its energy resources, including the intensified import of gas, electricity, coal, and fuel oil.

    In October 2023, Uzbekistan initiated gas imports from Russia through Kazakhstan, marking a significant milestone in diversifying the country's energy sources. Under a two-year contract, Uzbekistan secured gas imports totaling 9 mn cubic meters per day, equivalent to approximately 2.8 bn cubic meters annually, to alleviate energy shortages and bolster domestic energy security.

    Earlier Daryo reported that Uzbekistan and Russia are in talks to finalize a fresh, extended gas agreement, which may involve higher quantities of gas being supplied.

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    21.02.2024, 15:54   Comments (0)   1852
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