The Ministry of Energy and the China National Petroleum Corporation (CNPC) signed a memorandum of cooperation for an underground gas storage facility (UGS) project, the Ministry of Energy's press service said.
The UGS facility may be built at Korabayir field in Kasan district of Kashkadarya province.
Preliminary survey found that the 12th horizon of the Korabayir field is the best option for the facility's location.
The future 1.5 BCM UGS will reportedly be of strategic importance for stable energy supplies and regulating seasonal fluctuations in gas consumption.
Back in January 2024, the President discussed with the chief of CNPC the possibility of constructing underground gas storage in Uzbekistan, modernizing gas transmission systems, and implementing modern drilling technologies. In September of this year, the parties discussed this issue again.
CNPC, through a joint venture with Uzbekneftegaz, built a section of the Central Asia-China gas pipeline and is involved in the development of Mingbulak oil field and several gas condensate fields in Bukhara province. In 2024, it became contractor for the Bukhara Oil Refinery modernization project.
Underground Gas Storage Facilities in Uzbekistan
Uzbekistan has two underground gas storage facilities. Gazli in Romitan district of Bukhara province, and Khojaabad in Andijan province.
The Energy Minister Jurabek Mirzamakhmudov announced last October that the capacity of the Gazli gas storage facility (owned by Gazli Gas Storage, a company owned by Bakhtiyor Fazylov) had been increased from 3 to 4.5 BCM. By 2025, its capacity is planned to double to 6 BCM.
The capacity of Khodjaabad gas storage facility is 900 million cubic meters, and it was planned to increase it to 1.05 million cubic meters.
Uzbekistan also discussed with Kyrgyzstan the resumption of operations of the 3 BCM North Sokh UGS in Fergana province, which has been inactive since May 2011.