World Bank approves $10.6 million grant to help Uzbekistan reduce gas leaks

The project targets inefficiencies in the country’s gas infrastructure, which has deteriorated over time due to insufficient investment in maintenance and repairs. According to estimates cited by the World Bank, if these issues remain unresolved, gas losses could reach 1.75 billion cubic meters by 2030, resulting in approximately $228 million in lost revenues.

The Uzbekistan Gas Leak Repair Facility Project will be financed through the Global Flaring and Methane Reduction Trust Fund and will focus on identifying and repairing major leaks across the national gas transmission network.

The network is operated by Uztransgaz.

By 2029, the project is expected to recover approximately 47,500 metric tonnes of gas annually, which will then be redirected for consumption by households and businesses.

Reduced gas losses are also projected to generate about $18 million in financial savings. Most of these funds will be reinvested into continued leak detection and repair programs, helping improve the long-term efficiency and reliability of the gas transmission system.

“A more efficient gas transmission network will turn waste into value, freeing up more domestically produced and affordable energy for people and businesses in Uzbekistan. Reducing losses in the gas network will provide substantial savings and economic gains,” said Najy Benhassine.

In addition to improving energy efficiency, the project is expected to deliver environmental and economic benefits.

“Fixing leaks from gas infrastructure is relatively straightforward and offers multiple advantages. Along with strengthening government revenues and energy security, the project will create jobs, improve operational safety, and reduce harmful emissions,” said Zubin Bamji.

Methane – the primary component of natural gas – is a potent greenhouse gas, and reducing leaks can significantly lower emissions.

The grant will also support the creation of a dedicated financial facility managed by the Ministry of Economy and Finance of Uzbekistan.

This facility will finance additional gas capture and leak repair initiatives across the transmission network operated by Uztransgaz. Savings generated through the project will replenish the fund, enabling ongoing maintenance and improvements.

The initiative will also provide advanced equipment and specialized training for Uztransgaz personnel to strengthen the company’s capacity to detect and repair gas leaks.

In addition, the project will assist the operator in adopting internationally recognized standards for measuring and reporting methane emissions, helping improve transparency and environmental management across the gas sector.