Wedoany.com Report on Mar 17th, The World Bank recently approved a $10.6 million grant to support Uzbekistan in repairing leaks in its aging natural gas transmission system. This project aims to recover leaked natural gas resources, provide more stable energy supply for local households and businesses, while enhancing national energy security and economic benefits.

Due to long-term insufficient maintenance, Uzbekistan's natural gas infrastructure suffers from severe leakage problems. If not repaired promptly, by 2030, it is estimated that natural gas losses could reach 1.75 billion cubic meters, causing economic losses of approximately $228 million.

Najy Benhassine, World Bank Country Director for Central Asia, stated: "Improving the efficiency of the natural gas transmission network can transform wasted resources into tangible value, releasing more domestically produced and affordable energy for the people and businesses of Uzbekistan. Reducing losses in the gas network will bring significant economic savings and benefits."

Funded by the World Bank's Global Flaring and Methane Reduction (GFMR) Trust Fund, the project will help detect and repair critical leak points in the state-owned natural gas transmission network operated by JSC Uztransgaz (UTG).

It is expected that by 2029, the repair work will recover approximately 47,500 metric tons of natural gas annually for consumer and business use. The reduced leaks will also result in financial savings of about $18 million. These funds will primarily be used to support a long-term leak detection and repair program to continuously improve the efficiency and reliability of UTG's natural gas transmission system.

Zubin Bamji, Project Manager of the World Bank Group's Energy Global Practice Global Flaring and Methane Reduction Trust Fund, pointed out: "Repairing leaks in natural gas infrastructure is relatively easy and brings multiple benefits. In addition to increasing government revenue and improving energy security, this new project will also create jobs, enhance operational safety, and reduce harmful gas emissions."

The GFMR grant will fund a long-term gas capture plan through a financial institution managed by Uzbekistan's Ministry of Economy and Finance. The savings generated by the project will be channeled back to this institution to support further leak repair work on UTG's natural gas transmission infrastructure.

Furthermore, the project will provide UTG with advanced equipment and professional training to help the company address natural gas leaks more effectively. Simultaneously, the project will assist UTG in achieving high-standard reporting and measurement of methane emissions (the main component of natural gas), further enhancing its environmental management capabilities.