Gazprom supplies Uzbekistan with gas at an approximate rate of $160 per thousand cubic meters — Kommersant

Following the halt of gas deliveries to Europe in the wake of the war with Ukraine, Central Asian states remain a solitary new direction for Gazprom, Kommersant writes.

The publication reports that in 2023, Gazprom supplied Uzbekistan with gas at an estimated rate of $160 per thousand cubic meters, considerably lower than export prices to Türkiye or China.

It is noted that for the year 2023, Gazprom supplied nearly 7.25 billion cubic meters of gas to Kazakhstan, about 1.22 billion cubic meters to Uzbekistan, and 0.39 billion cubic meters to Kyrgyzstan.

"The supply price to Uzbekistan is significantly lower than that to Türkiye (approximately $270–280 per thousand cubic meters) and to China (approximately $260–270 per thousand cubic meters). Nonetheless, the current price allows Gazprom to make a profit of $20–22 per thousand cubic meters," said Sergey Kondratyev, an employee of the Russian Energy and Finance Institute.

Uzbek officials have not disclosed the detailed terms of the gas import contract with Russia, citing it as a commercial secret.

According to Kommersant, due to a decrease in gas production in Uzbekistan, imports from Russia will continue in the coming years. Currently, Uzbekistan has a contract to export 10 billion cubic meters of gas annually to China, which is not being fully met.

Almasadam Satkaliyev, Kazakhstan's Minister of Energy, stated that the transit volume of Russian gas through Kazakhstan to Uzbekistan could be increased fourfold from the initially planned 3 billion cubic meters to 11 billion cubic meters starting in 2026.

It should be recalled that last year Uzbekistan began importing gas from Russia for the first time: a contract was signed between UzGasTrade and Gazprom for the supply of up to 2.8 billion cubic meters of gas annually or up to 9 million cubic meters daily. Subsequently, negotiations began between the parties concerning medium and long-term contracts.

According to the 2024 state program, the volume of gas imports from the “north” will be increased from 9 million cubic meters per day to 32 million cubic meters. To prepare the republic's main gas system for this, a planned allocation of $500 million from foreign loans is anticipated.