10 Oct 2024 22:26

Uzbekistan wants to modernize gas transportation system in cooperation with Gazprom

TASHKENT. Oct 10 (Interfax) - Uzbekistan is modernizing its gas transportation system (GTS) and is interested in cooperating on this with Kazakhstan and Russia, Uzbek Deputy Prime Minister and Economy and Finance Minister Jamshid Kuchkarov said.

"We are working on modernizing our gas transportation system. And we're also very interested in cooperating on this with our Kazakh colleagues and with Gazprom [MOEX: GAZP]," Kuchkarov said at a plenary session of the St. Petersburg International Gas Forum.

Modernizing the GTS makes it possible to ensure reliable and stable gas supplies to the country, he said.

Kuchkarov said demand for gas was rising in Uzbekistan due to economic and population growth. The country is reforming its pricing policy for energy consumption, aiming to rationalize the use of resources.

The capacity of Uzbekistan's oil and gas enterprises previously made it possible to produce around 70 billion cubic meters of natural gas and 8 million tonnes of liquid hydrocarbons a year. However, depletion of reserves and technological losses have led to a significant fall in hydrocarbon production over the last 15 years. According to official statistics, natural gas production fell 9.6% year-on-year in 2023 to 46.71 billion cubic meters; oil production fell 2.3% to 770,100 tonnes.

Uzbekistan became a net importer of natural gas in 2023. In June of that year, the country concluded a two-year contract with Gazprom for purchasing gas, with daily supplies set at 9 million cubic meters and an annual supply of almost 2.8 billion cubic meters. Supplies under this agreement began on October 7, 2023. It was reported in February 2024 that the Uzbek government intended to modernize the country's trunk gas system in order to raise gas imports from Russia from 9 million cubic meters to 32 million cubic meters a day, or a 3.5-fold increase.