The World Bank has approved a $10.6 million grant to help Uzbekistan reduce leaks in its aging gas transmission system and recover valuable gas for use by households and industry. The project is aimed at improving energy security, increasing state revenues, and supporting job creation by making the country’s gas infrastructure more efficient and reliable.
Uzbekistan’s gas network has weakened over time due to years of underinvestment in maintenance and repairs, leading to significant gas leaks and financial losses. Without urgent intervention, total gas losses are projected to reach 1.75 billion cubic meters by 2030, which could result in an estimated $228 million in lost revenues. The World Bank says reducing these losses will help turn wasted gas into a useful domestic energy source for consumers and businesses.
The new Uzbekistan Gas Leak Repair Facility Project, financed through the World Bank’s Global Flaring and Methane Reduction (GFMR) Trust Fund, will support the detection and repair of major leaks across the state-owned gas transmission network operated by JSC Uztransgaz. By improving the system’s efficiency, the project is expected to strengthen the country’s ability to supply more affordable, domestically produced energy.
By 2029, the repairs are expected to recover around 47,500 metric tonnes of gas each year for use by households and businesses. Reduced losses are also projected to generate about $18 million in financial savings, with most of these savings set to be reinvested into future leak detection and repair efforts. This reinvestment approach is intended to create a longer-term cycle of improvements that will continue enhancing the reliability and performance of the gas transmission system.
In addition to financial and energy benefits, the project is expected to deliver broader economic and environmental gains. The World Bank noted that repairing gas leaks can help boost government revenues, improve workplace safety, create jobs, and reduce harmful methane emissions, which are a major contributor to climate change. These benefits make the initiative important not only for Uzbekistan’s energy sector but also for its environmental and economic resilience.
The grant will also support the creation of a long-term gas capture financing facility managed by Uzbekistan’s Ministry of Economy and Finance. This facility will be replenished using savings generated by the project and will fund additional leak repairs across the gas transmission network in the future. The project will further provide advanced equipment and training for JSC Uztransgaz, helping the company strengthen its leak response capacity and improve methane emissions reporting and measurement in line with high international standards.
