Uzbekistan is poised to complete its transition to wholesale electricity and natural gas markets by 2028, as announced by Minister of Economy and Finance Jamshid Kuchkarov at the St. Petersburg International Gas Forum. This move is a central component of the country’s comprehensive energy reforms aimed at improving the efficiency of its energy sector and minimizing natural gas losses.
Kuchkarov detailed the timeline for these reforms, stating that Uzbekistan plans to finalize the shift to a wholesale electricity market by 2027, followed by the establishment of a wholesale natural gas market in 2028. These changes are expected to enhance operational efficiency and attract greater investment from various companies in the energy sector.
“We plan to complete the transition to the wholesale natural gas market by 2028 and to the electricity market by 2027. Gas production will be managed by our companies under product-sharing agreements, with new smaller companies also entering the market,” Kuchkarov said.
Additionally, the minister emphasized the government’s strategy to implement a public-private partnership (PPP) model for gas distribution networks. This initiative is anticipated to further enhance efficiency and address issues related to natural gas losses. A pilot project for this PPP model is currently underway in the Bukhara region.
“We have adopted a program to transfer gas distribution networks to a public-private partnership model as part of our reforms to increase efficiency and reduce natural gas losses. A similar project is being prepared in Bukhara, and we hope it will help to prevent gas losses,” he added.
Kuchkarov noted that Uzbekistan’s natural gas consumption is nearly on par with that of Turkey, which utilizes approximately 63 billion cubic meters annually. However, he highlighted that Uzbekistan’s population and economy are significantly smaller than Turkey’s, indicating a pressing need for improvements in gas consumption efficiency.
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