The project, backed by a $10.6 million World Bank grant, is aimed at reducing gas losses across Uzbekistan’s gas infrastructure and cutting methane emissions.
The Cabinet of Ministers approved measures to implement the “Creating a Mechanism to Reduce Gas Leaks in Uzbekistan” project on August 18, 2026.
The grant was provided under an agreement between the Ministry of Economy and Finance and the World Bank. The project is also intended to strengthen climate action and ensure that savings generated by reducing gas losses are reinvested in the gas sector.
Gas leak detection activities carried out with World Bank support identified leaks of up to 35 million cubic meters at more than 1,000 points across Uztransgaz facilities nationwide, according to the government decision.
The project will run from 2026 to 2028, with leaks at Uztransgaz facilities to be identified and repaired in stages.
Most of the grant to target gas losses
Under the project’s financing plan, $9.6 million of the grant will be allocated to measures aimed at reducing existing gas losses in the infrastructure.
A further $500,000 will be used to strengthen institutional capacity for monitoring and reporting gas leaks and methane emissions. The remaining $500,000 will cover the work of the project implementation group, foreign experts and other project support activities.
The volume of gas saved through leak detection and repairs will be independently verified. The resulting financial savings will be deposited into a dedicated escrow account and used to finance energy-efficiency projects within the gas system.
The mechanism will support the introduction of systems for detecting, repairing, measuring, monitoring, reporting and independently verifying gas leaks. It will also finance the modernization and maintenance of gas infrastructure, as well as measures to improve environmental and safety standards.
Savings to be reinvested in gas infrastructure
The government has stipulated that savings generated by the project must remain within Uzbekistan’s domestic gas system.
Gas volumes saved through the project and confirmed through independent verification will be used to meet domestic demand for at least two years. During this period, gas tariffs will not be reduced, allowing the financial mechanism to continue operating on a sustainable basis.
An interagency working group comprising representatives of the Ministry of Economy and Finance, the Ministry of Energy and Uztransgaz will oversee implementation of the project.
