23 May 2024

Increased Reliance On Russia And Commitments To China Driving Uzbekistan’s Gas Imports – Analysis

Yunis Sharifli

Since 2022, Uzbekistan has faced an energy shortage with significant political and economic consequences. Despite its gas reserves, the country has transitioned from an energy exporter to an energy importer. A terminal decline in domestic gas production and a lack of significant discoveries of new deposits, coupled with aging infrastructure, have led to the energy shortages, particularly in the winters of 2022 and 2023 (Interfax, February 22; Daryo, March 27).

Cogeneration plants running on gas produce almost 85 percent of Uzbekistan’s electricity. In this regard, the gas shortages and growing electricity crisis have forced thousands of industrial workers into temporary layoffs and fueled public discontent (Eurasianet, December 9, 2022; CABAR.asia, January 1, 2023; see EDM, April 18, 2023). The gas shortage in Uzbekistan could lead to further discontent in the population’s future, and Tashkent’s growing alliance with Moscow may play a role in the tense geopolitical environment in the region.

In Tashkent alone, approximately 6,000 wholesale gas customers were disconnected from the national gas network, and 120 out of 584 neighborhoods experienced frequent and prolonged power and gas outages during the winter of 2023 (Eurasianet, January 16, 2023). The government has adopted a multi-pronged strategy to address the growing energy crisis, including importing gas from various countries, including Russia and Turkmenistan. Uzbekistan’s share of imported gas rose from $50.4 million in 2020 to $695 million in 2023, reflecting a growing reliance on external sources to meet domestic demand (Daryo, March 27).

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