The World Bank has approved a $10.6 million grant to Uzbekistan aimed at reducing leaks in the country's aging gas transmission infrastructure and ensuring supply to households and industrial enterprises. The bank's representative office in Uzbekistan officially announced this decision.
According to the bank, Uzbekistan's gas transmission networks have deteriorated over time due to insufficient investment in maintenance and repairs, leading to significant gas leaks and financial losses. If necessary actions are not taken, total losses could reach 1.75 billion cubic meters of gas by 2030, equivalent to $228 million in lost revenue.
World Bank Regional Director for Central Asia Naji Benhassine stated: “Improving the efficiency of the gas transmission system will reduce gas losses and, consequently, increase the volume of affordable energy produced in the country for Uzbekistan's population and businesses. Reducing leaks in the networks helps save additional resources and brings significant economic benefits.”
The “Creating a Gas Leak Reduction Mechanism in Uzbekistan” project, financed by a grant from the World Bank's Global Flaring and Methane Reduction (GFMR) trust fund, will help establish processes to identify and address numerous leaks in gas transmission networks managed by the state company “Uztransgaz”. The project plans to prevent nearly 47,500 tons of gas leakage to consumers and business entities through repair works by 2029.
The reduction in gas losses is also expected to secure savings of approximately $18 million. Most of these funds will be directed toward implementing long-term measures for leak detection and repair. Zubin Bamji, Head of the GFMR Trust Fund Program for the World Bank's Global Energy Practice, noted: “Addressing leaks in gas infrastructure is a relatively straightforward process with multiple advantages. Beyond increasing state revenues and strengthening energy security, the new project will enable the creation of additional jobs, improve the efficiency of gas network utilization, and reduce harmful gas emissions.”
The project also includes investments in modern equipment procurement and staff training for “Uztransgaz” to enhance the efficiency of gas leak detection and repair operations. Additionally, assistance will be provided to “Uztransgaz” in implementing international standards for reporting and measuring methane emissions—the main component of natural gas.
Source: www.gazeta.uz