In 2023, Uzbekistan began importing Russian natural gas through Kazakhstan at $160 per 1000 cubic meters. This move marks a significant diversification in Russian gas sales markets as reported by "Kommersant".
The agreement between UzGasTrade and Gazprom entails daily deliveries of 9 million cubic meters, totaling 2.8 billion cubic meters annually, costing around $448 million.
Minister of Energy Jurabek Mirzamakhmudov stated that all Russian gas will be allocated to the domestic market. Tariffs have been raised for state-owned enterprises and budget organizations, while remaining unchanged for the population since 2019.
Despite the lower price compared to Turkey and China, the current cost allows Gazprom to profit $20-22 per 1000 cubic meters. The transit of Russian gas through Kazakhstan to Uzbekistan is set to increase from 3 to 11 billion cubic meters annually by 2026.
Sergey Kondratyev believes that Uzbekistan's gas volume will be sufficient to meet export contracts with China. To achieve exporting 5-6 billion cubic meters to China by 2030, Uzbekistan may need to increase imports to 15-18 billion cubic meters.
Gazprom's CEO Alexey Miller announced plans for gas supply and transit cooperation among Russia, Kazakhstan, Kyrgyzstan, and Uzbekistan for the next 15 years by mid-2024.
Uzbekistan intends to modernize its gas pipeline system with a $500 million investment to boost gas imports from the north, increasing deliveries from 9 to 32 million cubic meters per day.
The World Bank warns of a potential gas demand-supply imbalance in Central Asian countries in the near future.
