Russian President Vladimir Putin has confirmed plans to boost natural gas exports to Uzbekistan. The announcement came following discussions with Kazakh President Kassym-Jomart Tokayev on November 27, in Astana, during which the two leaders also explored other aspects of bilateral cooperation, including energy projects.
In a statement to the media, President Putin highlighted the ongoing energy cooperation between Russia, Kazakhstan, and Uzbekistan, particularly in the gas sector. He pointed out that since 2023, Russia has been sending natural gas to Uzbekistan via Kazakhstan, and the volume of these shipments is set to increase.
Expansion of Gas Supplies to Uzbekistan
Putin revealed that the increased gas supplies to Uzbekistan would follow the successful implementation of gas transit through Kazakhstan, which began on October 7, 2023. According to the Kazakh Ministry of Energy, by the end of 2023, approximately 800mn cubic meters of gas would be transported through Kazakhstan to Uzbekistan and 2.8bn cubic meters are expected to be delivered over the year.
Gazprom, the Russian state-owned energy giant, has committed to expanding its role in the region. Putin noted that discussions were underway to increase the capacity of the Central Asia - Center gas pipeline system, which would allow for the delivery of additional gas to Central Asia, including Uzbekistan.
Looking ahead, Gazprom plans to quadruple the volume of natural gas it sends to Uzbekistan by 2025, from 2.8bn cubic meters to an estimated 11 billion cubic meters per year. This expansion of supply is part of a broader long-term strategy to secure energy stability for Uzbekistan and other Central Asian nations.
Over the first ten months of 2023, Uzbekistan increased its imports of gas from both Russia and Turkmenistan by 2.4 times, reaching a value of $1.36bn.
Uzbekistan’s reliance on imported gas has also grown in response to domestic shortfalls and rising consumption levels, particularly in the industrial and residential sectors. While Russia has been a key supplier, Uzbekistan also looks to Turkmenistan as a source of natural gas, given the close historical and economic ties between the two nations.
Cooperation Agreement and Long-Term Prospects
The increased gas supplies are part of a broader framework of energy cooperation between Russia and Central Asia. According to Alexey Miller, the CEO of Gazprom, Russia and the Central Asian countries are in discussions about a 15-year agreement on gas cooperation. This agreement aims to ensure long-term energy security for the region, including continued and expanded gas supplies for Uzbekistan.
Further negotiations are expected regarding the prices at which Uzbekistan will purchase natural gas. Last year, Uzbekistan imported gas from Russia at a price significantly higher than domestic rates, at $160 per thousand cubic meters. While this price is still considerably lower than the prices paid by other countries like Turkey and China, it remains a sensitive issue, with the Ministry of Energy in Uzbekistan refusing to disclose specific pricing details due to confidentiality agreements.
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