Uzbekistan Ups Gas Production as Residents Forced to Choose Coal

Russian hydrocarbons giant Lukoil is upping gas production in Uzbekistan. But as that gas is shipped abroad, local shortages are prompting Uzbek consumers to double their intake of dirty coal.

The private Uzdaily.uz website reported this week that Lukoil boosted gas production to about 4.3 billion cubic meters (bcm) in 2012, up from 2.6 bcm the year before. Output at the Khauzak-Shady-Kandym-Kungrad field jumped by 24.2 percent and production at Gissar, which started operating in late 2011, reached almost 1 bcm. 

Uzdaily.uz said Lukoil plans to extract 4.4 bcm this year, 5.2 bcm next year and 8.2 bcm in 2015. Uzbekistan's total gas production stayed roughly level at 62.9 bcm in 2012, according to government stats cited by RIA Novosti. 

One might think all this gas would help ease Uzbekistan’s chronic energy shortfalls. But growing gas exports seem to be contributing to widespread shortages and an increasing reliance on coal. 

Citing a source at the state-run Uzbek Coal company, Tashkent’s mildly critical independent Novyy Vek weekly reports that, across the country, residents doubled coal consumption last year. Uzbek Coal projects consumption to jump by almost 300 percent to 2.4 million metric tons by 2020. Uzbekistan produced about 3.9 million metric tons of coal in 2012.

Uzbek Coal plans to invest about $500 million in its Angren and Apartak deposits over the next few years in order to boost production to over 8 million tons per annum.