Uzbekistan has decided to increase its natural gas imports from Turkmenistan to address its mounting energy needs, while Turkmenistan is eager to find new buyers. However, the specifics regarding the volume and pricing of the additional supply have not been disclosed.
This decision followed a phone conversation on December 5 between Uzbek President Shavkat Mirziyoyev and Gurbanguly Berdimuhamedov, chairman of Turkmenistan’s Halk Maslahaty (People’s Council) and the de facto leader of the country.
Turkmenistan, which boasts the fourth-largest natural gas reserves in the world with an estimated 17.5 trillion cubic meters, counts China as its largest customer, importing around 35 billion cubic meters annually. Meanwhile, Uzbekistan has been purchasing 1.5 to 2 billion cubic meters in recent years.
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Uzbekistan’s domestic gas production has struggled to keep pace with its growing consumption. The country produced 51.7 billion cubic meters of gas in 2022, but this output dropped to 46.7 billion cubic meters in 2023 and is projected to decline further in 2024. This shortfall has forced Uzbekistan to rely more on imports.
The first contract for Turkmen gas was signed in December 2022 for 1.5 billion cubic meters annually, which was later increased to 2 billion cubic meters in August 2023. However, this volume has proven insufficient to meet rising demand. Uzbekistan also signed a two-year deal in June 2023 to import up to 2.8 billion cubic meters of gas from Russia, with plans to boost these imports to 11 billion cubic meters annually starting in 2026.