Uzbekistan: Gas Exports to Increase but Buyers Remain Scarce

Uzbekistan's state-controlled energy concern, Uzbekneftegaz, has plans to increase gas exports by 8 percent in 2009. But experts tell EurasiaNet there are no guarantees that a buyer for the additional Uzbek production will be found.

Shavkat Mazhitov, deputy chairman of the energy concern, says Uzbekistan's gas exports will grow from 15 billion cubic meters (bcm) to 16.2 bcm in 2009, with 93 percent of production heading for Russia. "We have [already] increased exports by 7 percent [in the first quarter of 2009]," Uzbek news agencies quote Mazhitov as saying.

Dmitry Alexandrov, an analyst with Financial Bridge, says Uzbekistan is betting on an upturn in commodity prices and renewed demand in the European market for gas, both of which appear to be long-shots over the near- and medium-term. "One can't be sure that Gazprom will buy all the gas produced in Uzbekistan and, in general, in Central Asia. This is because of a shortage of demand in Europe," Alexandrov said during a May 14 interview.