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Power Plants

Saudi Company to Launch 200 MW Power Plant in Samarkand

Saudi private company Pemco is set to begin construction of a new 200-megawatt gas-piston power plant in Samarkand by the end of this year, Uzbekistan’s Minister of Energy Jurabek Mirzamahmudov announced in an interview with the “Uzbekistan 24” TV channel. “The new power station will significantly strengthen the energy supply in the Samarkand region and support Uzbekistan’s efforts to ensure a stable electricity supply amid growing demand,” Mirzamahmudov said, following President Shavkat Mirziyoyev’s recent meeting with leading Saudi business representatives. The minister also outlined a range of ongoing energy projects in partnership with Saudi firms. “Together with ACWA Power, we have launched the first major thermal power plant,” he said. “Additionally, a solar power facility is operating in the Qibray district of Tashkent region, two large wind farms have started operations in Bukhara, and the first 100-megawatt wind power plant has been commissioned in Karakalpakstan.” Several new renewable energy initiatives are also in progress. “We have already begun practical steps on new wind and solar stations, and we plan to launch the first large-scale battery storage system in Parkent,” Mirzamahmudov added. He further noted that Uzbekistan is preparing to support operations at the new Tashkent airport with the production of renewable aviation fuel. This will be facilitated through a partnership between Saudi Arabia’s Vision Invest and U.S.-based Air Products, who have signed an agreement to develop a sustainable aviation fuel (SAF) plant. These developments come as Uzbekistan works to diversify its energy mix in anticipation of future demand. As previously reported by The Times of Central Asia, the country aims to bring a high-capacity nuclear power plant fully online by 2035. The first small modular reactor is expected to begin operations in 2029 in the Jizzakh region, followed by additional units in the early 2030s, according to Uzatom Director Azim Akhmedkhadjaev.

Automobile Industry

KIA Qazaqstan Car Factory Launched in Kostanay

A new car assembly plant owned by KIA Motors Corporation has officially launched operations in northern Kazakhstan. Once fully operational, the KIA Qazaqstan facility will be capable of producing up to 70,000 vehicles annually. President Kassym-Jomart Tokayev inaugurated the plant via teleconference. The decision to construct the plant in the Kostanay region was made in 2023. Located in the Kostanay industrial zone, the facility occupies nearly 63 hectares. More than $245 million has been invested in the project, which has created 1,500 jobs. The primary markets for the vehicles will include Kazakhstan, other Central Asian countries, and member states of the Eurasian Economic Union. Speaking during the Astana-Kostanay teleconference, President Tokayev highlighted the strategic importance of the new plant to Kazakhstan’s machine-building sector. He noted that KIA Sportage production had already begun in Kostanay two years earlier, and that this new phase, launched under an agreement with KIA Corporation, marks the start of full-scale vehicle manufacturing. Tokayev thanked KIA Corporation President Ho-Sung Song and the company for their cooperation, emphasizing the value of high localization in production. He stressed that increasing the share of domestically sourced components is vital for Kazakhstan’s industrial development. Experts estimate that each job at the plant will create up to five or six additional jobs in logistics, services, and infrastructure. “This is not just a linear expansion, but a major step toward creating a full-fledged industrial cluster, where small and medium-sized enterprises will have real opportunities to grow,” Tokayev said. “This approach will strengthen the industrial capacity not only of the Kostanay region, but of the entire country. I am confident that the KIA plant will become a new growth point for Kazakhstan’s automotive industry.” He added that the plant's launch will support the renewal of Kazakhstan’s vehicle fleet and contribute to improved road safety. In 2024, the machine-building sector attracted over $540 million in investment, 2.5 times more than in 2023. Since the beginning of 2025, $331 million has already been invested in the industry. Last year, Kazakhstan produced over 145,000 vehicles, with assembly facilities operating in Astana, Almaty, Semey, Uralsk, Kokshetau, Kostanay, and Saran. The sector currently employs more than 10,000 people. “The launch of KIA Qazaqstan will give a powerful boost to the technological modernization of the entire industry. In the future, the company will be able to manufacture new car models and enter foreign markets with products that meet international standards. Kazakhstan is ready to contribute to the development of the global automotive industry,” Tokayev concluded. As previously reported by The Times of Central Asia, between January and July 2025, Kazakhstan produced 83,200 vehicles worth $21.4 billion, an increase of 16.7% compared to the same period last year.

Gas Supply

Russia Overtakes Central Asian Suppliers in China’s Gas Market

While Central Asian nations remain major suppliers of natural gas to China, newly released data indicates that Russia is rapidly expanding its market share and has now overtaken traditional exporters from the region. According to figures from China’s General Administration of Customs, as reported by Russian state media TASS, Turkmenistan, Kazakhstan, and Uzbekistan together supplied more than $7.9 billion worth of pipeline gas to China between January and September 2025. Turkmenistan, historically China’s leading gas supplier, exported $6.46 billion worth of pipeline gas during the nine-month period, representing a 12.7% decline year-on-year. Kazakhstan followed with gas exports totaling $854.7 million, while Uzbekistan supplied approximately $629.8 million. Russia, however, has emerged as the largest single supplier, exporting $7.29 billion worth of pipeline gas to China in the same period, an 18.9% increase compared to the previous year. In September alone, Russian gas exports reached $802.2 million, slightly exceeding August’s figures. The surge follows an agreement signed during President Vladimir Putin’s visit to Beijing in late August and early September, under which Russia committed to supplying 106 billion cubic meters of gas annually to China. In 2024, China’s total pipeline gas imports rose by 8.6% to $21.1 billion, with Russian imports growing by 25% to $8.03 billion. Russia’s growing footprint in the Chinese gas market aligns with its broader strategy to deepen energy cooperation across Eurasia. In February, Moscow announced plans to construct a new trunk pipeline to supply gas to northern and northeastern Kazakhstan. The pipeline, which will pass through Russia’s Tyumen region, is designed to transport 10 billion cubic meters of gas per year and will be supported by compressor stations generating 50 megawatts.

Internet

Kazakhstan Forecasts Twofold Increase in Internet Traffic Consumption

Kazakhstan is set to double its internet traffic consumption by the end of 2025 compared to the previous year, Minister of Artificial Intelligence and Digital Development Zhaslan Madiyev announced during a government meeting. The minister also noted that full population coverage with internet services is not expected until 2027, meaning continued growth in demand is likely. “It is important to note the significant growth in internet traffic consumption this year: we expect it to be twice as high as last year,” Madiyev said. In 2024, total internet traffic in Kazakhstan reached 2.14 million terabytes, with the average subscriber using approximately 22.4 GB per month, 40% above the global average of 16 GB. Madiyev attributed this growth to substantial investment in digital infrastructure. Over the past three years, more than $1.8 billion has been invested in the development of internet and mobile communication services. Kazakhstan now boasts an average internet speed of 94 Mbps, with 20 million mobile internet users and 3.7 million fixed-line subscribers. “By the end of 2027, we plan to provide 100% internet coverage for the population, and internet speeds will exceed 100 megabits per second,” the minister stated. He added that 90% of rural settlements will be connected to fiber-optic communication lines by that time, significantly improving regional connectivity. According to the Kazakh government, of the country’s 6,179 settlements, 119 cities and 4,906 villages currently have access to communications infrastructure. Of these, 2,724 are connected via 3G and 2,182 via 4G. Fixed internet access is available in 1,902 villages through ADSL and in 2,654 villages via fiber-optic networks. Plans are in place to connect an additional 3,000 villages to high-speed internet by 2027. In parallel, 504 remote settlements will receive satellite internet access. Of these, 176 are already connected via KazSat, and a further 328 are expected to be connected through OneWeb by the end of 2025. In June 2025, Kazakhstan signed an agreement with Starlink, which officially began operating in the country on August 13. Starlink’s satellite internet is now used in more than 1,700 rural schools. Overall, 84% of the country’s villages are covered by mobile networks, according to ministry data. Alexander Babichev, Chairman of the Board at Mobile Telecom Service LLP (MTS), stated that 3G technology will be fully phased out in all major cities by the end of 2025, replaced by 4G. In 2026, Kazakhstan is expected to introduce VoWiFi technology nationwide, allowing voice calls over any available Wi-Fi network. “We have successfully conducted a pilot within the company, and next year the technology will become widely available,” said Evgeny Nastradin, Executive Director of Kar-Tel. In parallel, Kazakhstan is developing a national Wi-Fi operator to provide secure internet access across social and transport infrastructure. In the first phase, 400 locations in 10 cities will be covered. By 2027, that figure is expected to grow to 20,000. This infrastructure will support the rollout of digital services and AI-based solutions. As previously reported by The Times of Central Asia, the European Union has launched a...

Industrial Projects

The Industrial Map of Central Asia: Projects That Could Reshape the Region’s Economy

Over the next decade, the countries of Central Asia are preparing to launch a wave of industrial projects: copper mines, gas-chemical complexes, hydropower and nuclear plants, fertilizer factories, and others. The largest initiatives, valued at tens of billions of dollars, could significantly alter the balance of global markets. Uzbekistan: Betting on Metallurgy and Gas Chemistry Uzbekistan has been particularly active in launching new industrial projects. The largest initiative is the $15 billion expansion of the Almalyk Mining and Metallurgical Combine (AMMC), designed to increase copper cathode production from 148,000 to 400,000 tons annually by 2030. This more than two-fold increase is driven by strong global demand for copper. In May 2024, prices exceeded $11,000 per ton due to anticipated shortages linked to the energy transition and rising consumption in green technologies. Copper has become a key metal for electrification, and Uzbekistan’s copper megaproject fits squarely into this global trend, positioning the country as an emerging player in the market. Another strategic direction is the deep processing of natural gas into chemical products. In spring 2024, construction began on a $5 billion methanol-to-olefins gas-chemical complex in Bukhara. The plant, located in the Karakul Free Economic Zone, will process 1.3 billion m³ of gas and 430,000 tons of naphtha per year, producing up to 1.1 million tons of polymers. Completion is expected in 2027. The facility will create 2,000 direct jobs, and about 4,000 more in related industries such as construction materials, textiles, automotive, and electronics. Equipment suppliers include companies from the United States, Germany, and China, and the project is led by Uzbekistan’s largest oil and gas company, Sanoat Energetika Guruhi (Saneg). An even larger $10 billion MTO project is planned for completion by 2028, creating about 3,000 jobs and further expanding polymer production based on methanol. Uzbekistan is also investing in modernizing existing facilities. The $1.8 billion expansion of the Shurtan Gas Chemical Complex is under way, and preparations are being made for the privatization of the $3.4 billion Uzbekistan GTL plant launched in 2021. In renewables, a 250 MW solar power plant with Masdar is being built in Bukhara region with UAE partner Masdar, scheduled to come online by late 2025. Turkmenistan: Fuel, Energy, and the Chemical Industry Turkmenistan, which holds the world’s fourth-largest natural gas reserves, is focusing on export-oriented energy projects and the development of gas-chemical production. A key regional initiative is the TAPI pipeline (Turkmenistan–Afghanistan–Pakistan–India), valued at more than $7 billion. In 2024, work began on the Turkmen segment from Serhetabat on the Afghan border to Herat, forming the central section of the route. TAPI aims to deliver Turkmen gas to South Asian markets and enhance regional energy security. Despite geopolitical challenges, construction continues under the government’s “Arkadag Bright Path” energy development strategy. The country is also expanding its domestic processing capacity. In 2019, Turkmenistan launched the world’s first industrial gas-to-gasoline (GTG) plant in Ovadan Depe, a $1.7 billion facility that converts 1.8 billion m³ of gas into 600,000 tons of A-92 gasoline annually. The fuel...

Transport and Logistics

Bottlenecked: Eurasia’s Freight Lifelines Falter

Amid heightened geopolitical tensions and stricter border regulations, key transit routes linking China and Europe via Kazakhstan and Belarus have experienced severe disruptions. The resulting bottlenecks have exposed the fragility of Eurasian logistics and cast doubt on the reliability of the overland corridors central to China’s Belt and Road Initiative. From Military Maneuvers to Transport Gridlock For over two decades, Kazakhstan has invested heavily in developing its transit potential, aiming to become the main bridge between China and Europe. But in September and October this year, logistical bottlenecks began to appear, chiefly at border crossings. The disruptions were triggered by the closure of Belarusian‑Polish checkpoints following the launch of the Zapad 2025 military exercises (12‑16 September 2025) conducted by Russia and Belarus. On September 12, the day the exercises began, Poland suspended road and rail traffic after drones reportedly entered its airspace. Belarus claimed the drones had veered off course due to electronic warfare measures involving Russia and Ukraine. Despite this explanation, Poland invoked Article 4 of the NATO charter, prompting the alliance to launch Operation Eastern Sentry to bolster its eastern flank. The closure lasted nearly two weeks, during which more than 130 freight trains from China, carrying cargo worth billions of euros, were stranded. The China Factor and Limited Alternatives China responded diplomatically: on 15 September, Foreign Minister Wang Yi held talks in Warsaw; on 22 September, Politburo member Li Xi visited Minsk. Despite these efforts, border reopening was not immediately expedited. Alternative routes proved inadequate. The Trans‑Caspian International Transport Route (Middle Corridor) — through Kazakhstan and the Caspian Sea — is growing but still modest in capacity. In 2022 its potential was assessed at around 80,000 TEU annually. Some forecasts estimate it may rise to 10 million tons per year by 2027, but it remains well short of the volumes handled by the northern rail corridor. According to Logistan, the route currently has a monthly capacity of under 10,000 TEU, far short of the 40,000 TEU demand. The World Bank estimates that upgrading Middle Corridor infrastructure will require $27-$29 billion over 15 years, primarily for rail and port development. Amid these limitations, China tested a new maritime option: in September, an ice-class container vessel departed Ningbo-Zhoushan for the UK via the Northern Sea Route. The move indicates Beijing’s growing interest in Arctic alternatives to land corridors. Kazakhstan-Russia Hubs and “Gray” Transit As disruptions continued on the western flank, issues emerged in the south. Since mid-June, Russian logistics companies have reported delays at Kazakhstan’s border crossings. Kazakhstan’s Ministry of Finance attributed the slowdowns to increased inspections aimed at intercepting counterfeit goods. Forbes reported that roughly 7,000 trucks, carrying Chinese cargo worth hundreds of millions of dollars, were stranded. Many shipments used simplified declarations, often disguised as textiles or raw materials, and sometimes included dual-use items. Despite denials from both Kazakh and Russian authorities, freight companies cited congestion stretching for kilometers. The situation worsened after Russia imposed new migration rules restricting Kazakh drivers to 90 days of stay per year. The Kazakh government...