Uzbek fuel industry focuses on the creation of high-tech petrochemical clusters
Uzbekistan has undergone radical reforms in the years since President Shavkat Mirziyoyev assumed power in late 2016, including the easing of conditions for foreign investors in the natural gas industry and the work undertaken to create a more market-driven sector, Uzbekistan’s Deputy Minister of Energy on Oil and Gas Bekhzot Narmatov told a webinar on June 23, adding that a lot of the companies investing in Uzbekistan are also involved in “the green business”.
“We were even consumers of gas and liquid hydrocarbons but lately became more natural gas consumers because of the lack of liquid hydrocarbon reserves,” Narmatov said, adding that Uzbekistan used to produce and consume about 10 million tons of liquid hydrocarbons prior to 2000. “Close to the end of the 21st century we changed the direction to natural gas and we have one of the most extensive networks CNG stations in former Soviet Union. In some region 99 percent of the cars are running on natural gas,” he said.
“Thus, the consumption is growing and in order to support the economic growth in the country, which has boomed since Shavkat Mirziyoyev became president and liberalized the financial market, the investment markets, foreign investments have been welcome, we have made substantial changes to legislation, created new ones in order to make it possible. So, the main focus was not only the big projects but also the small and medium businesses to improve the quality of the life and create additional jobs,” Narmatov said, adding that the last few years consumption of natural gas has grown significantly. “It has changed from 9 billion in 2016 to 13 billion in 2021. We are making it possible for the businesses to grow by providing substantial amounts of natural gas. That’s why we are started to create an added value chain by processing the gas,” he said, adding that it is more profitable than just selling the gas.
ERIELL Group also took part in the international webinar on the future prospects for gas production in Uzbekistan. ERIELL Regional Business Unit for Central Asia head Bakhrambek Ismailov noted that the oil and gas sector is one of Uzbekistan’s strategic economic priorities, directly affecting both the future economic development of the country as well as its energy security and independence.
“Thanks to the State Comprehensive Program for the Implementation of Anti-Crisis Measures in the industry, many problems that have arisen in a number of developed countries have been avoided. Oil and gas enterprises have the opportunity to use their technological, financial and intellectual resources to the maximum extent possible to maintain stable economic growth,” he said.
Ismailov noted that in the long term, the fuel industry will focus on the creation of high-tech petrochemical clusters. This will contribute to the development of the production of high-quality products based on the processing of traditional and alternative hydrocarbons as well as alternative fuels based on the processing of solid household waste.
Founded in 2004, ERIELL Group is an international oilfield services group providing well construction and workover services to major oil and gas companies in Central Asia, Russia, and the Middle East. ERIELL cooperates with leading Russian and international companies such as Rosneft, NOVATEK, Gazprom, Gazprom Neft, LUKOIL, Uzbekneftegaz, Gazprom International, Petronas, CNPC, MOLGROUP and others.