Uzbekneftegaz Predicts Drop in Gas Production by 2025
Uzbekistan’s largest gas producer, Uzbekneftegaz, is expecting a further decline in gas production in the coming years. The company predicts that gas output will drop to 26.5 billion cubic meters in 2025, which is a decrease of 2.8 billion cubic meters from the previous year’s forecast and 5.7 billion cubic meters less than the volume produced in 2022. This new figure is also 7.6 billion cubic meters lower than earlier forecasts.
During a presentation to the president of Uzbekistan on December 19, the chairman of Uzbekneftegaz, Bakhodirjon Sidikov, shared the updated projections. To achieve the revised production goal, the company plans to drill new wells and repair existing ones. Uzbekneftegaz is also aiming to reduce production costs by 8% and improve its international credit rating. Additionally, the company plans to secure $2 billion in foreign loans by 2025 to fund production and exploration projects.
Despite these planned measures, gas production in Uzbekistan continues to decline. Gas output from large enterprises in the country dropped to 3.6 billion cubic meters in October 2024, a 5% decrease compared to October 2023. From January to October 2024, gas production totaled 37.1 billion cubic meters, down 4.8% compared to the same period in 2023.
Gas imports to Uzbekistan have increased, reaching $1.36 billion in the first 10 months of 2024, which is 2.4 times higher than the same period in 2023. Russia and Turkmenistan have announced plans to increase gas exports to Uzbekistan. Meanwhile, gas exports from Uzbekistan rose to $540.4 million, a 17.9% increase. The government has previously stated plans to halt gas exports entirely by 2025 to prioritize domestic consumption.
Uzbekneftegaz’s gas production at its fields and joint projects has been steadily declining. The company’s net profit for 2023 fell more than twofold, totaling 611.6 billion UZS. Despite investing heavily in increasing gas production, Uzbekneftegaz continues to face challenges in maintaining output levels.
