Uzbekistan increased electricity and gasoline production, but reducing gas production

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Gas production in Uzbekisan in 2023 dropped to 46.7 billion cubic meters, decreasing by 9.6% or 4.97 billion cubic meters compared to the same period the previous year, according to the report from the Statistical Agency on Industrial Production, Gazeta.uz reports.

The average monthly gas production reached 3.89 billion cubic meters, while in 2022, an average of 4.3 billion cubic meters of gas was produced per month.

In December, gas production increased to 3.95 billion cubic meters, the highest level since April. However, this is 9% or 395.1 million cubic meters lower than in December 2022 (4.35 billion).

The domestic production shortfall was covered by importing gas from Turkmenistan and Russia, turning Uzbekistan into a net gas importer.

Electricity production increased by 4.3%, or 3.19 billion kWh, compared to the same period the previous year, reaching 76.9 billion kWh. In December, 7.27 billion kWh of electricity were generated, the highest since May. For comparison, in December 2022, electricity production was 1.7 times lower (4.3 billion kWh).

Approximately 80-85% of the electricity produced in Uzbekistan comes from thermal power plants operating on gas, but their share is decreasing with the introduction of new capacities from photovoltaic power stations.

Coal production exceeded the previous year's figure by 15.5%, reaching 6.19 million tons. However, in December, 456.7 thousand tons of coal were produced, the lowest since March (307.1 thousand) but less than the volume in December 2022 (543 thousand tons). Production did not fall below 600 tons from July to November.

Oil production decreased from 787.8 thousand to 770.1 thousand tons (-2.3% or 17.7 thousand tons). Production has been declining for the fifth consecutive month, from 64.7 thousand tons in July to 60.8 thousand tons in December, the lowest level in the last two years. For comparison, in December 2022, oil production was 66.6 thousand tons.

In 2023, 1.33 million tons of automotive gasoline were produced, an increase of 6%, or 75.4 thousand tons, compared to 2022. In December, 117.6 thousand tons of this fuel were produced, which is 15.7% less than the previous year.

The production of diesel fuel increased by 26.6%, or 212.4 thousand tons, reaching 1.01 million tons.

The production of thermal energy decreased by 8.1%, from 26.5 to 24.4 million Gcal, and gas condensate by 6.9%, from 1.29 to 1.2 million tons.

Despite the challenges in the energy sector, Uzbekistan managed to achieve a 6% growth in industrial production, according to the Statistical Agency.

Due to a threefold reduction in tax rates on natural gas, a twofold reduction in rates for oil and gas condensate, the Uzbekistan state budget lost 538.1 billion soms in mineral extraction tax in 2022. In the same year, gas production decreased by 4%, and gas condensate by 2.8%. Oil production increased by only 1.8%.

Nevertheless, new benefits were provided for companies engaged in mining. Specifically, enterprises starting to extract metals and hydrocarbons within the next two years will be permanently exempt from the royalty tax introduced against the backdrop of rate reductions.

CentralasianLIGHT.org

January 23, 2024