Uzbekistan to receive US$10.6m to cut gas leaks

Tashkent, Uzbekistan (UzDaily.uz) — Uzbekistan will implement a World Bank-supported project to identify and eliminate gas leaks, reduce methane emissions and modernize gas infrastructure.

The project will receive a US$10.6 million grant and will run from 2026 to 2028.

Measures to implement the project were approved by Cabinet of Ministers Resolution No. 444 dated 18 August 2026. The grant agreement was signed by Uzbekistan’s Ministry of Economy and Finance and the World Bank.

The bulk of the funding, US$9.6 million, will be allocated to measures aimed at reducing gas losses in the infrastructure. Another US$500,000 will be used to strengthen institutional capacity for monitoring and reporting. The remaining US$500,000 will finance the project implementation unit, the engagement of foreign experts and other support activities.

Earlier studies conducted with World Bank support at Uztransgaz facilities identified gas leaks at more than 1,000 locations. Their total volume was estimated at up to 35 million cubic metres.

Under the approved mechanism, the volume of methane saved as a result of the project will undergo independent verification. Funds generated through the savings will be accumulated in a special escrow account.

These funds will be used to finance the modernization and maintenance of the gas system. At the same time, the natural gas saved will be supplied to the domestic market for at least two years.

An interagency working group will be established to coordinate the work. It will include representatives of the Ministry of Economy and Finance, the Ministry of Energy and Uztransgaz.

The project is intended not only to reduce gas losses but also to establish a mechanism under which resource savings will be used for the further development and maintenance of gas infrastructure.