World Bank Approves $10.6M Grant to Cut Gas Leaks in Uzbekistan’s Aging Transmission Network
SEATTLE (Oil Monster) – The World Bank has approved a $10.6 million grant to help Uzbekistan cut methane leaks from its aging gas transmission network, recover lost fuel for households and industry, and strengthen the country’s long‑term energy security and fiscal resilience.
Uzbekistan’s high-pressure transmission system, much of it built during the Soviet era, has suffered from years of underinvestment in maintenance and repairs, resulting in rising technical losses and foregone revenue for the state and the gas sector.
Why the Grant Matters for Uzbekistan’s Energy Security
Gas remains a critical pillar of Uzbekistan’s energy mix, supplying power plants, industry, and residential heating. Reducing leaks along the transmission system will help the country:
- Preserve more gas for domestic consumers instead of losing it to the atmosphere.
- Improve the financial performance of the state-owned gas transmission operator.
- Lower methane emissions, a potent greenhouse gas, supporting climate and environmental goals.
According to project estimates, if no action is taken, annual gas losses along the transmission network could reach around 1.75 billion cubic meters by 2030. That would translate into approximately $228 million in lost revenue, a significant drag on the sector’s financial sustainability.
World Bank Support: Turning Lost Gas into Usable Supply
The new initiative, known as the Uzbekistan Gas Leak Repair Facility Project, is financed through the World Bank–administered Global Flaring and Methane Reduction (GFMR) Trust Fund. The project focuses on detecting, prioritizing, and repairing leaks across the national gas transmission system operated by Uztransgaz, the state-owned transmission company.
By scaling up systematic leak detection and repair, the project aims to convert wasted gas into a usable energy resource. Najy Benhassine, the World Bank’s Regional Director for Central Asia, has emphasized that improving efficiency in Uzbekistan’s gas transmission network can deliver tangible benefits to households and businesses while generating substantial economic gains for the country.
Key Project Outcomes Expected by 2029
By the end of the implementation period, the Gas Leak Repair Facility Project is expected to deliver measurable technical, financial, and environmental benefits for Uzbekistan’s gas sector.
- Recovered gas volumes: Around 47,500 metric tonnes of gas per year are expected to be recovered across the transmission system by 2029.
- Financial savings: The project is projected to generate roughly $18 million in annual financial savings by reducing lost gas and improving operational efficiency.
- Environmental gains: Cutting methane leaks will help lower the sector’s greenhouse gas footprint and support national climate commitments.
These improvements are designed to complement broader efforts to modernize Uzbekistan’s gas infrastructure, enhance grid reliability, and support more efficient use of domestic energy resources.
Uzbekistan’s Broader Gas Sector Transition
The World Bank–supported leak reduction program comes as Uzbekistan is actively reshaping its gas sector through new supply arrangements, production enhancement projects, and infrastructure upgrades.
On the import side, Uzbekistan has increased cross-border pipeline deliveries to meet domestic demand. For more on recent trends in regional gas flows, see: Russia Increases Natural Gas Exports to Uzbekistan.
At the same time, the country is working with international partners to boost upstream and midstream performance. A recent example is Canada-based Condor Energies’ engagement to enhance production at several conventional gas-condensate fields, which is expected to raise domestic supply and support lower emissions over time. Details are available here: Condor Signed Production Enhancement Contract with Uzbekistan.
Next Steps for Uzbekistan’s Gas Transmission Network
The Gas Leak Repair Facility Project is structured to build local capacity and establish ongoing programs for leak detection, repair, and monitoring within Uztransgaz. Over time, this is expected to embed stronger maintenance practices and data-driven decision making into the company’s operations.
By coupling targeted investments with operational reforms, Uzbekistan aims to reduce technical losses, improve service reliability for consumers, and better align its gas sector with global best practices on methane management and energy efficiency.