Uzbekistan is set to make a shift in its energy sector, with plans to transition to the electricity market by 2027 and the wholesale natural gas market by 2028, according to Minister of Economy and Finance Jamshid Kuchkarov. Speaking at the St. Petersburg International Gas Forum, Kuchkarov outlined the country’s strategy for reforming its energy markets and increasing efficiency in natural gas production.
"We aim to complete the transition to the wholesale natural gas market by 2028 and to the electricity market by 2027," Kuchkarov said. "Gas production is currently carried out by both local companies and those operating under production sharing agreements. We are seeing new small companies entering the market, and we want to encourage more to join Uzbekistan's mining industry."
As part of broader energy reforms, Uzbekistan is also adopting a public-private partnership (PPP) approach to managing its gas distribution networks. A pilot project is already underway in the Bukhara region to boost efficiency and reduce natural gas losses through this model.
Kuchkarov emphasized the disparity in gas consumption between Uzbekistan and Turkey. Despite Turkey's population of over 85mn and its larger economy, it consumes about 63bn cubic meters of natural gas annually, a figure that nearly matches Uzbekistan’s consumption despite its smaller population of 37mn.
The transition plan is part of a larger framework of economic reforms, including the government's decision to adjust electricity and natural gas tariffs beginning May 1, 2024. Under the new policy, fuel and energy prices will gradually increase throughout 2024 and 2025, with new consumption norms for electricity and natural gas introduced for households.
To alleviate the impact of rising prices on vulnerable groups, social assistance will be provided to low-income families and specific consumer categories.
Minister of Energy Jurabek Mirzamakhmudov explained the rationale behind the price hikes, citing the need to modernize infrastructure, ensure sustainable energy supply, and support ongoing reforms in Uzbekistan's energy sector.
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