Uzbekistan improves gas network to benefit households and businesses
The World Bank has approved a $10.6-MM grant to help Uzbekistan reduce leaks in its aging gas transmission system and recover valuable gas to power households and industry, boosting energy security, state revenues and job creation.
Uzbekistan’s gas infrastructure has deteriorated over time due to underinvestment in maintenance and repairs, leading to gas leaks and financial losses. Without repairs, total gas losses could reach 1.75 billion cubic meters by 2030, resulting in $228 million in lost revenues.
“A more efficient gas transmission network will turn waste into value, freeing up more domestically produced and affordable energy for people and businesses in Uzbekistan. Reducing losses in the gas network will provide substantial savings and economic gains,” said Najy Benhassine, World Bank Division Director for Central Asia.
The Uzbekistan Gas Leak Repair Facility Project, funded by the World Bank’s Global Flaring and Methane Reduction (GFMR) Trust Fund, will help detect and fix major leaks across the state-owned gas transmission network operated by JSC Uztransgaz (UTG).
By 2029, repairs will recover an estimated 47,500 metric tpy of gas for use by consumers and businesses. Reduced losses will also generate about $18 million in financial savings, most of which will be reinvested in long-term leak detection and repair efforts to continually improve the efficiency and reliability of UTG’s gas transmission system.
“Fixing leaks from gas infrastructure is relatively easy and provides multiple benefits. In addition to boosting government revenues and energy security, this new project will create jobs and a safer operating environment, while reducing harmful emissions,” said Zubin Bamji, Program Manager, Global Flaring and Methane Reduction Trust Fund, World Bank Group Energy Global Department.
The GFMR grant will fund long-term gas capture initiatives through a financial facility managed by Uzbekistan’s Ministry of Economy and Finance. This facility, replenished through project savings, will finance additional leak repairs across UTG’s gas transmission infrastructure.
The project will also support advanced equipment and training for UTG, helping the company better address gas leaks. It will also assist UTG in achieving top-tier reporting and measurement standards for methane emissions—the main component of natural gas.
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