Reforms are underway in Uzbekistan to abolish monopoly in natural gas supply

As part of Uzbekistan's comprehensive strategy for sustainable economic development outlined in the "Uzbekistan-2030" plan, the abolition of monopolies in the supply of natural gas and liquefied gas to consumers is underway.

Transitioning to Market Principles

A plan of practical activities for 2024 has been devised to facilitate this transition, emphasizing the introduction of market principles in the distribution of natural gas and liquefied gas. This initiative aims to establish transparent resource accounting mechanisms and foster competition in the energy sector.

By April 2024, regulatory procedures for transferring natural gas and liquefied gas distribution networks to the private sector will be formulated and approved. These regulations will provide the framework for the orderly transfer of distribution networks, ensuring a smooth transition towards privatization.

Identifying Pilot Regions

"Uzbekneftegaz" will spearhead the selection of "pilot" regions where the natural gas distribution system will be transferred to the private sector between 2024 and 2025. The selection process will be guided by specific criteria and considerations to facilitate efficient management and operations under private ownership.

Enhancing Gas Supply Infrastructure

In tandem with these reforms, "Uzbekneftegaz" will undertake comprehensive geological and technical measures throughout 2024 to bolster the stability of natural gas supply to various sectors of the economy and the population. These measures include the drilling of utility wells, capital repair works on existing wells, and the implementation of technological upgrades.

Strategic Output Goals

The projected output from these initiatives is substantial, with plans to produce 29.3bn m³ of natural gas in exchange for the completed works. This underscores Uzbekistan's commitment to modernizing its energy infrastructure and ensuring reliable gas supply to meet the demands of economic growth and societal needs.

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