The World Bank has approved a $10.6 million grant for Uzbekistan, aimed at reducing leaks in the country's aging gas transportation infrastructure and preserving natural gas for household and industrial supply. The funding is part of efforts to address systemic inefficiencies in the energy sector.
The project, titled "Creating a Mechanism to Eliminate Gas Leaks in Uzbekistan," will be implemented with the participation of the state-owned company JSC "Uztransgaz." Financing comes from the World Bank's Global Flaring and Methane Reduction Partnership (GFMR) trust fund, which focuses on cutting methane emissions and ending routine gas flaring in the oil and gas sector.
Experts estimate that Uzbekistan's gas transport system is severely degraded due to insufficient investment in maintenance and repairs, leading to significant gas leaks and financial losses. Without modernization, cumulative losses could reach 1.75 billion cubic meters of gas by 2030, equivalent to $228 million in foregone revenue.
World Bank Regional Director for Central Asia, Naji Benhassine, noted that improving the efficiency of the gas transport system will help reduce gas losses and provide additional volumes of affordable energy to the population and businesses.
Under the project, plans include purchasing modern equipment, training Uztransgaz personnel, and implementing international standards for methane emission monitoring. By 2029, repair works are expected to prevent the leakage of approximately 47,500 tons of gas annually, with an economic benefit of around $18 million.
Saved funds will be channeled into a special fund under Uzbekistan's Ministry of Economy and Finance, which will finance further work to identify and eliminate leaks in the gas transport infrastructure.
GFMR Fund Program Manager, Zubin Bamji, emphasized that eliminating gas leaks is a relatively simple measure that simultaneously enhances energy security, increases state revenues, creates jobs, and reduces harmful emissions.
The GFMR trust fund is supported by a range of countries, companies, and international organizations and is dedicated to reducing methane emissions and halting routine gas flaring in the oil and gas sector.
Source: kun.uz