Uzbekistan Expects to Save US$18 Million Annually by Reducing Gas Leaks

Tashkent, Uzbekistan (UzDaily.uz) — A new financing mechanism will allow Uzbekistan to reduce natural gas losses and redirect saved funds back into the system to support ongoing gas infrastructure repairs. The initiative was announced by the Ministry of Economy and Finance of the Republic of Uzbekistan.

According to the ministry, more than 1,000 gas leak locations have been identified across the country's gas infrastructure. These leaks cause an estimated annual loss of up to 35 million cubic meters of gas—a volume sufficient to supply approximately 12,500 households for a full year.

To address the issue, the ministry signed a US$10.6 million grant agreement with the World Bank. Rather than functioning solely as a direct repair fund, the grant establishes a self-sustaining cycle: funds will initially support detecting and fixing leaks, after which an independent verifier will measure the exact volume of saved gas. The monetary value of the saved gas will be calculated and transferred to a dedicated account, with the proceeds continuously funding further repair work across the system.

By 2029, the project is projected to prevent the loss of roughly 47,500 metric tons of natural gas per year, yielding approximately $18 million in annual financial savings. This will preserve additional gas supplies for residential consumers and commercial enterprises while creating a stable, long-term funding source for maintaining and modernizing the national gas transport system.

Implementation measures were approved by Cabinet of Ministers Resolution No. 444 on August 18, 2026, with project operations planned for 2026 through 2028.

From the total US$10.6 million grant, US$9.6 million is allocated directly toward infrastructure loss-reduction measures. An additional US$500,000 is designated for strengthening institutional capacity in leak monitoring and reporting, while another US$500,000 will cover project implementation team operations and foreign expert consultancy.

An interdepartmental working group—comprising representatives from the Ministry of Economy and Finance, the Ministry of Energy, and state gas transmission operator Uztransgaz—has been established to coordinate project execution.