20 Feb 2024 16:44

Uzbekistan prepared to allocate $470 million to modernize gas transport system to increase Russian gas imports

TASHKENT. Feb 20 (Interfax) - JSC Uztransgaz will modernize its main gas pipelines to increase gas imports from Russia by attracting investments of up to $470 million for it, the investment program adopted by the government of Uzbekistan says.

The address list of investment projects this year includes a document titled "Uztransgaz JSC. Program for modernization of the main gas pipeline system to increase the volume of natural gas imports in the northern direction (preliminary project)."

The cost of modernization is estimated at $470 million, with implementation from 2024-2030. The project will be financed with funds from foreign banks.

In winter, Uzbekistan faced a large-scale energy crisis due to extreme cold weather conditions. The government said that during winter peak loads there was a gas shortage across the republic of up to 20 million cubic meters per day. President Shavkat Mirziyoyev criticized officials for negligence in their preparations for the autumn-winter period.

Therefore, it was decided to intensify imports of gas, electricity, coal and fuel oil. On October 7, 2023, Uzbekistan began importing gas from Russia via the territory of Kazakhstan to cover part of its energy resource deficit. The gas purchase contract was concluded for two years, with volumes of 9 mcm per day, or nearly 2.8 bcm per year.

JSC Uztransgaz is the operator of the country's gas transportation system and ensures the transportation of natural gas to the domestic market, as well as the export and transit of gas from Uzbekistan.