Uzbekistan increased its natural gas exports to China in May, with supplies rising to $78.16 million, almost double the amount exported in April. Despite this increase in exports, the country’s gas production continues to fall.
Gas production in Uzbekistan fell by 9.8% in the first five months of the year compared to the same period last year, with production falling for the second consecutive month in May. Meanwhile, electricity production showed record growth in May, while growth in oil production slowed to 3.1%.
The Energy Ministry of Uzbekistan announced details of a two-year gas agreement with Gazprom. It will supply 9 million cu.m. daily and an annual volume will reach almost 2.8 billion cu.m. This is in contrast to earlier reports by Kommersant, which stated that the volume would be twice as much.
An agreement on Russian gas supplies to Uzbekistan was signed between Gazprom and Energy Ministry of Uzbekistan, along with a road map for preparing the country’s gas transportation system. The supply of Russian gas to Uzbekistan via Kazakhstan will begin in the fourth quarter of 2023.
Uzbekistan resumed exporting natural gas to China after a three-month break. The volume of gas supplies in April amounted to $40.5 million.
Uzbekistan produced 16.26 billion cubic meters of gas in January-April 2023, which is a 9.5% decrease from the same period last year. Electricity and heat production also declined, while oil and coal production increased slightly.
Uzbekistan considers importing gas from Russia via the Central Asia-Center pipeline, as the Bukhara-Urals pipeline is obsolete, Uzbek Energy Minister said. The parties are assessing the costs of repairing compressor stations for reverse gas delivery.
Uzbek Energy Minister, Jurabek Mirzamakhmudov, announced at the Tashkent Investment Forum that the country’s gas production is expected to see positive growth in the second half of 2023, following a decline in production due to various factors.
Uzbekistan imported $151.2 million worth of gas in March, more than half of its imports last year. The figure rose sharply against the backdrop of falling domestic gas production. Import of coal, oil and oil products also increased.
Uzbekistan experienced a 9.6% decline in gas production during Q1 2023, totaling 12.3 billion cubic meters, with electricity production also falling by 5%. The production of thermal energy and coal has fallen as well. This downturn is attributed to reduced tax rates and other industry challenges.
Uzbek Energy Minister Jurabek Mirzamakhmudov and Russian Deputy Prime Minister Alexander Novak convened in Moscow to discuss collaboration in gas, oil, and electricity sectors, including renewable energy, hydropower, and nuclear power plant construction.
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