Uzbekistan continues to see decline in natural gas output
Natural gas production in Uzbekistan has declined by 21.7 percent over the past four years, largely due to weak strategic planning and an overemphasis on short-term operational tasks, according to discussions held at a recent meeting of JSC Uzbekneftegaz, Qazinform News Agency cites UzA.
The meeting reviewed progress on priority tasks outlined by the Uzbek president, focusing on restoring the company’s operations, stabilizing natural gas production, and increasing industrial output. Participants stressed the need to clearly assess the economic efficiency and profitability of each gas field in order to address long-standing structural issues.
Despite substantial funding allocated this year for geological exploration and technical work, production levels have failed to improve. According to the company’s information service, a 5–6 percent drop in gas output has also had a negative impact on the production of related products.
Currently, natural gas extracted by JSC Uzbekneftegaz is being supplied to the next stage of processing at prices below cost. This pricing imbalance has undermined the company’s financial stability and contributed to a rise in external debt.
During the meeting, officials discussed specific proposals and initiatives aimed at overcoming the sector’s challenges, ensuring the sustainable development of natural gas production, and increasing reserves. Based on these discussions, a comprehensive action plan for the development of the industry was approved.
Previously, Qazinform News Agency reported Uzbekistan and Türkiye eye $5 billion in trade turnover.
