Photo: "Gazeta.uz"

Uzbekistan experienced a 9.6% decline in gas production during Q1 2023, totaling 12.3 billion cubic meters, with electricity production also falling by 5%. The production of thermal energy and coal has fallen as well. This downturn is attributed to reduced tax rates and other industry challenges.

Uzbekistan’s gas production during the first quarter of 2023 totaled 12.3 billion cubic meters, reflecting a 9.6% decrease or a reduction of 1.3 billion cubic meters compared to the same period in the previous year, as noticed by Gazeta.uz, citing data from the Statistics Agency on industrial production.

The country produced 4.31 billion cubic meters of gas in January (-7.5% compared to January 2022), 3.85 billion (-9%) in February and 4.16 billion (-12.96%) in March.

During the first quarter, electricity production experienced a 5% year-on-year decline, dropping from 19.5 billion to 18.5 billion kWh. The statistics reveal that this is the first instance of a decrease in electricity generation for the first quarter since 2020.

The largest fall in electricity production was recorded in March (-10.6%), while in January and February it was 2% and 2.3%, respectively.

Thermal energy production witnessed a 16.5% decline (with a substantial 36.4% drop in March), while coal production saw a 14% reduction, and gas condensate production experienced a 9% decrease. In contrast, oil production demonstrated a 6.7% increase during the same period.

At the same time, according to the Statistics Agency, industrial production in physical volume in the first quarter of the year grew by 4.1%, although in January-February there was a decrease of 3.9%.

As reported earlier by Gazeta.uz, Uzbekistan’s state budget experienced a shortfall of 538.1 billion soums in natural resource tax revenue in 2022, due to a threefold reduction in tax rates for natural gas and a twofold decrease for oil and gas condensate. In the same year, gas production dropped by 4% and gas condensate production declined by 2.8%, while oil production only saw a modest increase of 1.8%.

In a previous discussion regarding the companies involved in Uzbekistan’s oil and gas fields, Energy Minister Jurabek Mirzamakhmudov revealed, in response to an Ozodlik investigation, that out of 294 oil fields, Uzbekneftegaz operates 118, with the remaining 176 managed by foreign enterprises.

As of January 1, 2021, Uzbekneftegaz held the largest proven reserves in the country, with 934.1 billion cubic meters of gas, accounting for 50% of current reserves. Lukoil managed 413.1 billion cubic meters (22.1%) of gas reserves, Uz-Kor Gas Chemical 109.6 billion cubic meters (5.9%), Surhan Gas Chemical 106.6 billion (5.8%), and Jizzakh Petroleum (now Saneg) 84.9 billion cubic meters (4.5%). Uzbekneftegaz was also responsible for the majority of the production.

Source:  https://www.gazeta.uz/en/2023/04/24/gas/

Press Service of JSC “National Electric Grid of Uzbekistan”