Uzbekistan : Preparation of Gas Infrastructure Modernization in Uzbekistan

Energy / Oil and gas transmission and distribution

This small-scale TA will support the preparation of SCADA system implementation in Uzbekistan's gas sector. SCADA is a standard operational practice in gas transportation systems and allows real-time assessment of the status of gas transportation infrastructure, including natural gas flow rates, operational pressure, and other technical indicators at any given time and location of the network. Access to these data is critical to quickly respond to any disruptive changes in the condition of the gas transportation system, optimize network operation and maximize returns from gas transportation assets through effective system monitoring and control.

At present, Uzbekistan's gas sector does not have a SCADA system and operates on analogue equipment. Introducing a modern SCADA system will digitalize network operation and allow for a modern communication infrastructure to deliver relevant real-time data and transparency on network operating conditions.

The implementation of SCADA in Uzbekistan's gas sector is part of a bigger ensuing project targeting the modernization of Uzbekistan's gas infrastructure. It is expected to add significant value to the project and capitalize on the modernization effort by improving overall efficiency, profitability and reliability of national gas supply. Any existing SCADA studies in relation to Uzbekistan's gas sector shall be used to the extent possible.

Natural gas is the most important indigenous source of energy in Uzbekistan and regarded as one of the key driving forces of the country's economy, contributing to 20% of national budget revenues (taxes) and 15% of the national gross domestic product (GDP). Natural gas comprises 85% of the country's energy mix, and 75% of electricity generated in the country. Uzbekistan's aging gas infrastructure and network underinvestment have led to supply shortages, inefficiency, high losses, and low reliability. Built more than 50 years ago, the gas transmission system consists of a complex network of high- and medium-pressure pipelines equipped with physically degraded compressors and lacking any centralized functions to measure, monitor, and control supply and demand.

Absence of periodic maintenance and insufficient capital investments resulted in technical losses of 15% equivalent of Uzbekistan's gas export volumes. Most transmission facilities have not been tested or inspected for the past 30 years. Without adequate capital investment in transmission modernization, automation and management of a system of this size, gas transportation remains highly underutilized leading to higher maintenance cost, greater operational risks and economic and financial losses. This imperils Uzbekistan's energy security and constrains national economic growth.

To sustainably manage and efficiently utilize its gas potential, the Government of Uzbekistan is aiming at modernizing its gas infrastructure with support from ADB. A project concept paper for an ensuing loan was approved on 28 January 2019.