Uzbekistan Oil and Gas Upstream Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The market for oil and gas upstream in Uzbekistan is expected to grow at a CAGR of less than 2.97% during the forecast period of 2020 - 2025. Factors, such as increasing natural gas production, and plans to improve oil and gas production are expected to increase the growth for the Uzbekistan oil and gas market, during the forecast period. However, reducing consumption of natural gas, in the country may impede growth in the market.

Key Highlights

• Natural gas is the most important export commodity in the country. The production of oil in the country is small and most of the fossil fuel export, in the country, are accounted by the export of natural gas.
• In 2019, New Chakar gas field has been discovered in the Fergana Valley in Uzbekistan. The gas fields are expected to aid the government to increase its production targets and provide an opportunity for the companies in the industry.
• Increasing investment in the upstream sector is expected to be the most prominent driver of the Uzbekistan oil and gas upstream industry. Increasing production of oil and gas in the country is, also, expected to further boost the market in the forecast period.

Key Market Trends

Natural Gas to Dominate the Market

• The country is expected to export approximately 15 billion cubic meters of gas, in 2019, a 15% increase from 2018. China, the Russian Federation, and Kazakhstan are major importers of Uzbek natural gas.
• In 2018, Uzbekistan held an estimated 19.5 trillion cubic meters of proved natural gas reserves at the beginning of 2018. All of the country's proved gas reserves are held onshore because Uzbekistan is a landlocked country.
• There has been an increase in natural gas production by 6.1% Increasing to 48.7million tons of oil equivalent (Mtoe) in 2018 from 45.9 Mtoe in 2017. The natural gas consumption in the country decreased, by 1.2%, to 36.6 million tonnes, in 2018 from 37.1 million tonnes, in 2017. The increase in the production of natural gas is expected to aid the industry.
• Hence, natural gas is expected to dominate the market due to large gas basins being produced in the country and further investments being made to increase oil and gas production.

Increasing Investment to Drive the Market

• The government is expected to actualize more than 30 investment projects with USD 33 billion, investment in the oil and gas sector between 2019-2025, according to the statement from Uzbekneftegaz, in 2019.
• Natural Gas-Stream JV and Gas Project Development Central Asia is investing more than 700 million USD in gas production in the northwest of Uzbekistan. The production capacity is expected to contain 1.633 billion cubic meters of natural gas. All gas produced at the site is expected to be exported.
• There has been an increase in oil production, by 3.57%, to 2.9 million tons of oil equivalent (Mtoe) in 2018 from 2.8 Mtoe in 2017. The oil consumption in the country decreased, by 3.8%, to 2.6 million tonnes, in 2018 from 2.7 million tonnes, in 2017. The increase in oil production is expected to provide a boost to the upstream sector.
• The Uzbekistan oil and gas industry is expected to grow slightly in the forecast period due to a increase in oil and gas production in the country and increasing investment in the oil and gas sector.

Competitive Landscape

The Uzbekistan oil and gas upstream market is moderately consolidated. The major companies include JSC Uzbekneftegaz, PJSC Gazprom, LLC LUKOIL Uzbekistan Operating Company, China National Petroleum Corporation, and Centrex Europe Energy & Gas AG.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support