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Status of Uzbekistan’s gas transportation projects

Uzbekistan Materials 9 January 2017 12:48 (UTC +04:00)

Tashkent, Uzbekistan, Jan. 9

By Demir Azizov- Trend:

The Uztransgaz JSC, the subsidiary of the Uzbekneftegaz National Holding Company, controls gas transportation and delivery in Uzbekistan.

At present, the Uztransgaz system includes 13,274 kilometers of trunk gas pipelines, 24 gas compressor and 310 gas distribution stations, as well as three underground gas storage facilities with a total capacity of 4.5 billion cubic meters of gas.

Central Asia-Center Gas Pipeline

The Central Asia-Center gas pipeline was commissioned in late 60’s with a capacity of up to 80 billion cubic meters per year. Over time, the pipeline’s capacity fell to 40-50 billion cubic meters of gas per year. The pipeline currently needs reconstruction.

In the north-western Uzbekistan, separate sections of Central Asia-Center and Bukhara-Ural powerful gas transmission systems were laid. These sections are designed for transit and export of Uzbek gas to Russia.

In late December 2012, the Gazprom company and the Uzbekneftegaz National Holding Company signed a contract to buy Uzbek gas, as well as an agreement to transport gas through Uzbekistan in 2013-2015.

According to Gazprom, it bought about 4 billion cubic meters of gas in Uzbekistan in 2013 and 7.38 billion cubic meters in 2014, while it was planned to purchase one billion cubic meters of gas in 2015.

In 2016, Gazprom and Uzbekneftegaz signed a contract to buy four billion cubic meters of Uzbek gas in the same year.

Central Asia-China gas pipeline

The length of the Central Asia-China gas pipeline through the territory of Turkmenistan is 188 kilometers, Uzbekistan - 525 kilometers, Kazakhstan - 1,293 kilometers, China - over 4,860 kilometers.

The gas pipeline stretches to the city of Guangzhou, China, where gas is distributed through existing gas branches.

The first branch of the gas pipeline with diameter of 1,067 millimeters (two parallel branches) with a length of 530 kilometers and capacity of 40 billion cubic meters of gas per year runs through the territory of Bukhara, Kashkadarya and Navoi regions, and then reaches Kazakhstan’s gas transport system.

Construction of the first section of the Central Asia-China gas pipeline started on July 1, 2008. Construction of the first branch of the pipeline's Uzbek section was completed in late 2009.

Construction of the second branch of the Central Asia-China pipeline's Uzbek section with a capacity of 25 billion cubic meters of gas annually was completed in late 2010. This branch was built to pump gas volumes from the fields of Uzbekistan, Turkmenistan and Kazakhstan.

In October 2011, the Uztransgaz JSC and China’s PetroChina International Corporation Limited signed a contract to supply China with about 10 billion cubic meters of Uzbek gas. Uzbekistan started to regularly supply gas to China in August 2012.

In December 2011, Uzbekistan and China started to build the third branch of the Central Asia-China gas pipeline. The total length of the third branch will be 1,840 kilometers. The section passing through Uzbekistan will be 530 kilometers long.

Construction of the linear section of the gas pipeline worth $2.05 billion with a capacity of 25 billion cubic meters of gas per year was completed in December 2014. The project was financed with loans of the China Development Bank (CDB), as well as direct investments of China National Petroleum Corporation (CNPC).

Uzbek-Chinese Asia Trans Gas LLC joint venture created by Uzbekneftegaz National Holding Company and the CNPC is the operator of the project on the Uzbek section.

According to the Chinese sources, a total of 108.81 million tons of gas was transported from Turkmenistan and Uzbekistan to China via the lines A, B and C since the beginning of the gas supply through the Central Asia-China gas pipeline Dec. 14, 2009 until late July 2016.

Uzbekistan and China signed an agreement in 2013 to construct and operate the fourth branch of Uzbekistan-China gas pipeline with the capacity of 30 billion cubic meters of gas per year. The fourth branch of the pipeline is designed to pass Turkmenistan-Uzbekistan-Tajikistan-Kyrgyzstan-China route.

It was planned that the construction of the Uzbek section of the gas pipeline should have started in 2015, however it hasn’t.

The export contract to supply Uzbek gas to China was signed in October 2011. The contract was signed by Uztransgaz JSC and PetroChina International Corporation Limited (the division of CNPC), according to Uzbekneftegaz company.

China is expected to annually purchase 10 billion cubic meters of Uzbek gas in accordance with the framework agreement.

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