Uzbekistan expects to save $18 million a year by reducing gas leaks.

Uzbekistan plans to save $18 million annually by reducing gas leaks.

The Ministry of Economy and Finance of the Republic of Uzbekistan reports that the country is introducing a new financing mechanism that will reduce gas losses and use the savings to repair gas infrastructure.

According to the ministry, more than 1,000 leaks have been identified in Uzbekistan's gas system, losing up to 35 million cubic meters of gas annually. This volume is enough to supply 12,500 households with gas for a year.

The ministry has signed a grant agreement with the World Bank for $10.6 million. These funds will be used not only for repairs, but primarily for identifying and eliminating leaks. An independent verifier will then re-measure the volume of gas saved. The cost of the saved gas will be calculated and credited to a separate account, and the funds generated will be returned to the system to finance further repairs.

According to the ministry's forecasts, by 2029, the project will prevent the loss of 47,500 metric tons of gas annually, saving approximately $18 million. This will provide more gas for households and businesses and create a sustainable source of funding for the repair and modernization of the gas system.

As previously reported by UzDaily.uz, project implementation measures were approved by Cabinet of Ministers Resolution No. 444 of August 18, 2026. The project itself is scheduled to run from 2026 to 2028.

Of the allocated grant, $9.6 million is earmarked for reducing gas losses in infrastructure, $500,000 for strengthening institutional capacity for monitoring and reporting, and another $500,000 for the project implementation team and the engagement of international experts.

An interdepartmental working group will be established to coordinate the work, including the Ministry of Economy and Finance, the Ministry of Energy, and Uztransgaz.