The cost of supplying Russian gas to Uzbekistan in 2023 stood at $160 per 1,000 cubic meters, Kommersant reported on March 6.
Starting in October 2023, Gazprom initiated gas supplies to Uzbekistan in reverse mode through the Central Asia-Central (CAC) gas pipeline system. The agreement between the parties stipulated the export of up to 3 bn cubic meters annually for a duration of two years. Sergey Kondratev, an expert from the Institute of Energy and Finance, highlighted the competitive advantage of the deal, noting that the price of gas delivery to Uzbekistan is substantially lower compared to other regions such as Turkey and China.
Despite the relatively low pricing, Gazprom managed to maintain a profit margin of $20-$22 per 1,000 cubic meters. Kondratev further emphasized that the elimination of export duties on deliveries to Uzbekistan, coupled with potential involvement in gas processing projects within the country, could further enhance the profitability of these transactions.
However, concerns arise regarding Uzbekistan's gas production levels and the sustainability of current supply volumes. Kondratev pointed out that with the decline in gas production domestically, it remains uncertain whether the existing volume of 11 bn cubic meters would suffice for future transit or replacement to China.
Looking ahead, Kondratev proposed an ambitious plan for Uzbekistan to increase gas imports to 15-18 bn cubic meters by 2030.
"I think that Uzbekistan should increase imports to 15-18 bn cubic meters in order to export 5-6 bn cubic meters to China by 2030. Of course, in this case, we are not only talking about deliveries from Russia, but also about increasing imports from Turkmenistan," he said.
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