Uzbekistan Expands Energy Cooperation with the Gulf and the U.S.

Compression station of the Balticconnector marine gas pipeline Inkoo, Finland. 5th November 2019
Reuters

Uzbekistan is strengthening international partnerships in the energy sector, signing several new deals with Gulf and U.S. companies to expand its renewable capacity, modernise production, and attract billions in investment.

The Ministry of Energy has signed an agreement with Gulf Oil International to build a lubricant production plant in the Jizzakh region. 

The facility will have a capacity of up to 60,000 tonnes per year and will rely on local raw materials to meet domestic demand and supply regional markets.

According to the ministry, the project will not only reduce import dependence but also strengthen industrial capacity and create new jobs. 

Gulf Oil representatives say Uzbekistan’s strategic location and ongoing economic reforms makes it an attractive regional hub.

At the same time, Uzbekistan is advancing its green energy agenda with Allied Biofuels Corporation unveiling plans to invest around $150 million in a biofuel production facility that will convert agricultural waste into environmentally friendly fuel.

The initiative is in line with Uzbekistan’s target to increase the share of renewables in its energy mix to 40% by 2030, reiterating its national green transition strategy.

The project is expected to generate new employment opportunities in rural areas while contributing to emission-reduction goals and sustainable development.

Uzbekistan is also deepening ties with leading American energy companies, including Schlumberger, GE Vernona, and Honeywell. 

Discussions largely focus on technology transfer, modernisation of thermal power plants, and the introduction of smart energy systems.

The agreements reached during President Mirziyoyev’s visit to the U.S. demonstrate Uzbekistan’s balanced approach to energy policy through strengthening cooperation in traditional oil and gas and accelerating the shift towards renewables.

Through these partnerships, Uzbekistan aims to combine foreign investment, innovation, and domestic reform to build a sustainable and competitive energy future.

Tags