Uztransgaz, an Uzbek joint stock company specializing in exploration, production, storage and distribution of natural gas, plans to invest $500 million by 2020 in upgrading gas trunk pipelines and building new compressor stations, as reported by local media.
In particular, a $266 million project envisages the construction of a new section of the Yangiyer–Tashkent gas pipeline with a length of 165 km and a capacity of up to 10 billion cubic meters of natural gas per year. The new pipeline will help stabilize gas supplies to the Regions of Tashkent and Fergana of the Republic of Uzbekistan.
In addition, Uztransgaz plans to build a new compressor station at the Central Asia – Center gas pipeline system and upgrade the station that currently operates there. This project is planned to attract nearly $215 million of investments.
The works to upgrade gas infrastructure will start by the end of this year, according to the company.
Investments in Uzbekistan's fuel and energy sector has been growing steadily for several years. The data provided by the State Committee of the Republic of Uzbekistan on Statistics shows that the total volume of capital investments in the country in 2015 amounted to $15.7 billion, which exceeds the result for 2014 by 9.6%. The Committee’s statement says that the main part of the investments (65%) was targeted at production projects, including those in the energy sector (24%).
Last year, the total volume of assimilated foreign investments exceeded $3 billion. This year, under the investment programme approved by Islam Karimov, Uzbekistan’s President, the Republic plans to assimilate over $4 billion of foreign investments, more than half of which will be destined at developing projects in the fuel and energy sector.
Gazprom International, the sole specialized Gazprom enterprise that operates in the areas of prospecting, exploration and development of hydrocarbons abroad, has been cooperating with the Republic of Uzbekistan as a foreign investor since 2002.
In 2012, Gazprom International completed the multi-stage geological exploration program at the investment blocks of the Ustyurt region, which resulted in the discovery of the Dzhel gas deposit in 2009. In addition, under the Production Sharing Agreement signed in 2004, the operator carries out construction and redevelopment of the Shakhpakhty field in Karakalpakstan. The total volume of natural gas produced in the area since 2004 exceeds 3 billion cubic meters.
Uztransgaz JSC is among Uzbekistan's key companies specializing in exploration, production, transportation, storage, refining and sales of natural gas, gas condensate, and oil. Uztransgaz is comprised of 26 associated and affiliated enterprises. The company operates 13,027.1 km of gas trunk pipelines, which reach all of the Republic’s regions and have access to gas transportation systems of several neighboring countries, such as Turkmenistan, Kazakhstan, Kyrgyzstan and Tajikistan.
There are more than 200 hydrocarbon deposits in Uzbekistan. Each year, 63-65 billion cubic meters of gas are produced in the country, 50 billion of which are consumed within the republic and around 13 billion cubic meters of gas are exported, mainly to Russia and China. Popular Off-White