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Uzbekistan to End Gas Delivery Monopoly, Engage Private Sector in Gas Distribution

in Economy / Uzbekistan - by


In Uzbekistan, plans are underway to abolish the monopoly on delivering natural and liquefied gas to consumers and involve the private sector in managing low-pressure gas distribution networks. This is in line with the state program for 2024.

By the end of April, the Ministry of Economy and Finance, the Competition Committee, the Ministry of Investments, Industry, and Trade, and the Ministry of Justice have been tasked with developing and approving the procedure for transferring natural and liquefied gas distribution networks to private businesses.

Based on the developed regulations, "pilot" regions will be identified for transfer to the private sector in 2024-2025. Negotiations with potential companies are scheduled to be held by the end of July to transfer gas distribution networks in these regions to the private sector under specific conditions.

A gas distribution network is a unified production-technological complex that includes external gas pipelines, structures, technical and technological devices located on external gas pipelines, and is designed to transport natural gas from the disconnecting device installed at the exit of the gas distribution station to the disconnecting device located at the border of the gas distribution network and gas consumption network (including residential buildings' gas consumption networks).

In February, measures for Uzbekistan's energy security were presented to the president. Among them are tariff reforms for gas and electricity, the introduction of social norms starting April 1st, the restructuring of contracts for the purchase of electricity amounting to $49 billion, attracting investors to the distribution and sale of electricity in Samarkand, and more. Additionally, by October 1st of this year, at least five districts plan to hand over the function of delivering liquefied gas to the population to a private operator.