Uzbekistan

Gas leak of up to 35 million cubic meters detected in Uztransgaz system

A new project to detect and eliminate gas leaks, reduce methane emissions, and redirect savings to gas infrastructure in Uzbekistan will be implemented. A grant of $10.6 million has been allocated for the project, which will involve the World Bank.

Gas leaks of up to 35 million cubic meters were detected in the Uztransgaz system.

By Resolution No. 444 of the Cabinet of Ministers of Uzbekistan dated August 18, 2026, measures were determined to implement the project “Creating a Mechanism for Eliminating Gas Leaks in Uzbekistan” with the participation of the World Bank.

According to the resolution, a grant agreement worth 10.6 million US dollars was signed between the Ministry of Economy and Finance and the World Bank for the implementation of the project.

The main objectives of the project are to reduce losses in gas infrastructure, reduce methane emissions, strengthen measures to combat climate change, and reinvest funds generated as a result of gas savings in the sector.

The document notes that as a result of the activities carried out with the support of the World Bank to identify gas leaks, up to 35 million cubic meters of gas leaks were detected at more than 1,000 points of Uztransgaz facilities in the republic.

The project will be implemented during 2026-2028. Within its framework, gas leaks at facilities in the Uztransgaz system will be gradually identified and eliminated.

According to the financing schedule attached to the resolution, the main part of the grant funds - $ 9.6 million - will be directed to measures aimed at reducing the volume of gas losses in the gas infrastructure.

Another $ 500 thousand will be allocated to strengthening the institutional capacity to monitor and report on gas leaks and reduce methane emissions, and the remaining $ 500 thousand will be allocated to the activities of the project implementation team, attracting foreign experts and supporting the project.

As part of the project, the volume of methane gas saved as a result of eliminating gas leaks will be independently verified. The funds generated on this basis will be accumulated in a special escrow account and directed to financing effective projects in the gas system.

The financial mechanism is intended to finance activities related to the detection and elimination of gas leaks, the introduction of measurement, monitoring, reporting and verification systems, modernization and maintenance of gas infrastructure, as well as ensuring environmental and safety standards.

The resolution sets another important condition: the volumes of natural gas reduced as a result of the project and confirmed on the basis of independent verification will be used for the needs of the domestic market for at least two years. During this period, the stable operation of the financial mechanism will be ensured by not reducing tariff payments for this gas.

An interdepartmental working group will also be established to coordinate the project, consisting of representatives of the Ministry of Economy and Finance, the Ministry of Energy and Uztransgaz.

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