World Bank Grants Uzbekistan $10.6 Million to Reduce Gas Leaks

The World Bank has approved a $10.6 million grant for Uzbekistan to tackle leaks in its aging gas transportation network. The funds aim to conserve natural gas for households and industry, enhance energy security, and create new jobs.

Years of underinvestment in maintenance have left the country's gas infrastructure in poor condition, leading to significant fuel losses. Without intervention, cumulative gas losses could reach 1.75 billion cubic meters by 2030, representing roughly $228 million in lost revenue.

The project, titled "Establishing a Gas Leak Reduction Mechanism in Uzbekistan," will be financed through the World Bank's Global Flaring and Methane Reduction (GFMR) trust fund. It focuses on creating systematic methods for detecting and repairing leaks within the pipelines operated by the state-owned company JSC "Uztransgaz."

By 2029, the initiative aims to prevent the annual leakage of approximately 47,500 metric tons of gas through repair work. The conserved gas will be supplied to consumers and businesses, with the reduction in losses expected to save about $18 million each year.

A significant portion of these savings will be channeled into a dedicated fund under Uzbekistan's Ministry of Economy and Finance. This fund will finance long-term leak detection and repair activities, ensuring more reliable and efficient operation of the gas network.

The project also includes plans to procure modern equipment and train personnel at Uztransgaz to improve leak detection capabilities. Furthermore, it will support the company in adopting international standards for reporting and measuring methane emissions—the primary component of natural gas.