The Cabinet of Ministers has approved steps to implement a World Bank-backed project aimed at curbing gas leaks across the country, under the August 18, 2026 Resolution.
Under the resolution, the Ministry of Economy and Finance and the World Bank have signed a $10.6 million grant agreement to fund the project. Its core objectives are to reduce losses in gas infrastructure, cut methane emissions, strengthen climate resilience steps, and reinvest the savings from reduced gas waste back into the sector.
According to the document, World Bank-supported surveys have already identified gas leaks at more than 1,000 points across facilities operated by Uztransgaz, the state gas transmission company, with total losses estimated at up to 35 million cubic meters.
The project will run from 2026 to 2028, during which leaks across Uztransgaz's network will be identified and repaired in phases.
Per the financing schedule attached to the resolution, the bulk of the grant — $9.6 million — will go toward steps to reduce existing losses in gas infrastructure. A further $500,000 will fund efforts to strengthen institutional capacity for monitoring and reporting on gas leaks and methane emissions, while the remaining $500,000 will support the project implementation team, including the hiring of international experts.
The volume of methane saved through leak repairs will undergo independent verification. Funds generated on that basis will be pooled in a dedicated escrow account and channeled toward financing further efficiency projects within the gas system.
The financial mechanism is designed to fund leak detection and repair, the rollout of measurement, monitoring, reporting and verification systems, infrastructure modernization and maintenance, and compliance with environmental and safety standards.
The resolution sets one key condition: verified volumes of natural gas saved through the project must be directed to meet domestic market demand for at least two years, during which tariffs for that gas cannot be reduced — a provision intended to keep the financial mechanism sustainable.
An interagency working group — comprising representatives from the Ministry of Economy and Finance, the Ministry of Energy, and Uztransgaz — will be established to coordinate the project.
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