World Bank Allocates US$10.6M to Upgrade Uzbekistan Gas Networks

Tashkent, Uzbekistan (UzDaily.com) — The World Bank has approved a US$10.6 million grant to Uzbekistan aimed at reducing leaks in the country’s aging gas transport infrastructure and preserving natural gas for households and industrial enterprises. The project is expected to enhance energy security, increase state revenues, and create new jobs.

Uzbekistan’s gas transport system has suffered from underinvestment in maintenance and repair, resulting in gas losses and financial shortfalls. Without intervention, cumulative gas losses could reach 1.75 billion cubic meters by 2030, equivalent to roughly US$228 million in lost revenue.

Najy Benhasin, World Bank Regional Director for Central Asia, emphasized that improving the efficiency of gas networks will reduce fuel losses and provide households and businesses with greater access to energy, generating substantial economic benefits.

The “Gas Leak Reduction Mechanism in Uzbekistan” project will be funded through the World Bank’s Global Flaring and Methane Reduction (GFMR) trust fund, targeting systematic detection and elimination of leaks in pipelines managed by the state company JSC Uztransgaz. By 2029, the initiative aims to prevent approximately 47,500 metric tons of gas leakage annually, redirecting saved gas to consumers and saving an estimated US$18 million per year. A significant portion of these savings will support long-term measures for ongoing leak detection and repair, strengthening the reliability and efficiency of the gas transport system.

Zubin Bamji, GFMR Program Manager, noted that addressing leaks is a relatively straightforward task that provides substantial benefits, including increased government revenues, improved energy security, job creation, enhanced operational efficiency of gas networks, and reduced emissions.

The grant will finance long-term measures through a special fund under the Ministry of Economy and Finance, replenished by revenues from the gas saved through the project. The initiative also includes procurement of modern equipment, staff training, and implementation of international standards for methane emissions measurement and reporting.