Energy cooperation - The Times Of Central Asia

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Energy cooperation

Petronas Turkmenistan Deal Deepens Malaysia Energy Ties

Malaysian Prime Minister Anwar Ibrahim arrived in Turkmenistan on June 18 for an official visit focused on energy cooperation, with the two countries signing a new strategic partnership involving Petronas and Turkmenistan’s energy authorities the following day. Anwar and Turkmen President Serdar Berdimuhamedov witnessed the signing on June 19, Malaysian media reported. The agreement followed earlier comments by Malaysian Deputy Economy Minister Akmal Nasrullah Mohd Nasir, who said Malaysia was seeking to strengthen its energy supply chains through long-term hydrocarbons cooperation with Turkmenistan. Anwar's visit follows Turkmen President Serdar Berdimuhamedov’s official trip to Malaysia in 2024, which Turkmen officials have described as opening a new stage in bilateral relations. Energy is the central pillar of economic ties between the two countries. Malaysian state energy company Petronas has operated in Turkmenistan since 1996, when it became one of the first foreign companies to develop offshore oil and gas fields in the Turkmen sector of the Caspian Sea. Since then, the company has invested about $11 billion in Turkmenistan’s hydrocarbon sector. Petronas’ main asset is Block 1, linked to the Kiyanly Gas Treatment Plant and Onshore Gas Terminal on Turkmenistan’s Caspian coast. Block 1 currently produces about 400 million cubic feet of natural gas per day, equivalent to roughly 4.1 billion cubic meters per year, and holds more than 7 trillion cubic feet of gas resources. In 2025, Petronas signed a new production-sharing contract for the block with Abu Dhabi’s XRG, state enterprise Hazarnebit, and state concern Türkmennebit. Under that arrangement, Petronas retained 57% as operator, XRG took 38%, and Hazarnebit held 5%. Berdimuhamedov also approved a resolution authorizing Türkmennebit to conclude an agreement with Petronas and Hazarnebit on the development of licensed offshore blocks in Turkmenistan’s sector of the Caspian Sea. Malaysia’s role in Turkmenistan is smaller than China’s, but more technical and operational. Petronas has been an upstream investor and offshore operator, while China is Turkmenistan’s dominant gas customer. Turkmenistan exports around 30 billion cubic meters of gas a year to China. In April 2026, China and Turkmenistan signed an agreement on the fourth phase of the Galkynysh gas field, under which China National Petroleum Group (CNPC) is to build gas-processing facilities capable of handling an additional 10 billion cubic meters of gas per year. Reuters reported the project value at $5.1 billion. Turkmen state media said the two countries are also seeking to broaden cooperation across a range of sectors from transport to science and education. Talks in Ashgabat are expected to focus on energy cooperation, investment projects, and expanding trade links.

Gas Imports

Russian Gas Exports to Uzbekistan Rise as Domestic Production Continues to Fall

Russian gas deliveries to Uzbekistan increased by 15% in 2025, reaching nearly 6.5 billion cubic meters, according to Gazprom’s annual report, as reported by TASS. The report shows that supplies rose from 5.64 billion cubic meters in 2024 to 6.48 billion cubic meters in 2025. Gas was delivered through Kazakhstan using the Central Asia-Center pipeline system in reverse-flow mode. Gazprom said exports to Uzbekistan increased throughout the year, with deliveries in the fourth quarter reaching the maximum technical capacity of the route. The company also reported a 22.2% increase in overall gas exports to Kazakhstan, Uzbekistan, and Kyrgyzstan in 2025. The growth in Russian supplies comes as Uzbekistan faces declining domestic gas production. Earlier this year, The Times of Central Asia reported that the country’s natural gas output fell by 15% in the first quarter of 2026. According to Uzbekistan’s National Statistics Committee, the country produced 9.6 billion cubic meters of natural gas between January and March, compared with 11.3 billion cubic meters during the same period a year earlier. Production declines were also recorded in other energy sectors, including oil, coal, and gas condensate. Uzbekistan began importing Russian gas under a contract signed with Gazprom in June 2023. Deliveries started in October of that year as the country sought additional supplies to meet growing domestic demand, particularly during the winter season. In October 2025, the Russian government said Gazprom was continuing to implement a contract providing for annual gas supplies of up to 7.7 billion cubic meters to Uzbekistan. Officials also noted the potential for further increases in export volumes. Energy cooperation between the two countries has expanded in recent years. In 2024, Gazprom signed agreements with Kazakhstan on the transit of Russian gas to Uzbekistan and Kyrgyzstan for the period from 2025 to 2040. The same year, Uzbekistan announced plans to modernize its gas transmission network and raise its capacity for Russian gas imports from 9 million cubic meters to 32 million cubic meters per day.

Bilateral Trade

Tajikistan and Pakistan Agree to Expand Trade and Economic Cooperation

Tajikistan and Pakistan have agreed to deepen trade and economic cooperation following the eighth meeting of their Joint Commission on Trade, Economic, Scientific, and Technical Cooperation in Dushanbe. The meeting concluded with the signing of a protocol outlining measures to expand bilateral cooperation across a range of sectors, including trade, investment, energy, agriculture, and transport. According to Tajikistan’s Ministry of Energy and Water Resources, the discussions also covered banking, education, science and technology, tourism, youth policy, sports, and communications. Tajikistan’s delegation was led by Minister of Energy and Water Resources Daler Juma, while Pakistan was represented by Federal Minister for Energy Sardar Awais Ahmad Khan Leghari. Officials from both countries said bilateral relations have improved in recent years, supported by growing political engagement and economic cooperation. Trade between the two countries reached $43 million in 2025, according to figures presented during the meeting. Bilateral trade totaled $8.9 million in the first quarter of 2026. The two sides agreed on the need to increase trade volumes by expanding the range of goods exchanged, identifying new areas of cooperation, and developing ties between businesses and investors. Particular attention was given to the CASA-1000 electricity transmission project, which aims to export surplus hydropower from Tajikistan and Kyrgyzstan to Afghanistan and Pakistan. Participants described CASA-1000 as a key element of regional energy cooperation and an important platform for expanding economic links between Central and South Asia. The protocol of the commission’s eighth session is expected to help advance future cooperation and support the implementation of joint initiatives. The meeting ended with the signing of the protocol of the commission’s eighth session, which both sides said would help advance future cooperation and support the implementation of joint initiatives.

Energy

Uzbekistan Expands Energy Cooperation With SOCAR and BP at Energy Week Forum

President Shavkat Mirziyoyev held talks on May 13 with executives from Azerbaijan’s state oil company SOCAR and energy giant BP during the Uzbekistan Energy Week 2026 forum in Tashkent. According to the Uzbekistan's presidency, Mirziyoyev met with SOCAR President Rovshan Najaf, as well as BP representatives Ariel Flores and Giovanni Cristofoli, to discuss expanding cooperation in the energy and oil and gas sectors. The sides noted the growing partnership between Uzbekistan and SOCAR, particularly in the development of hydrocarbon fields on the Ustyurt Plateau in western Uzbekistan. Officials also agreed to open a SOCAR representative office in Uzbekistan as cooperation between the two countries deepens. BP’s participation in the Ustyurt project was also highlighted during the meeting. Discussions focused on joint projects involving oil and gas exploration, hydrocarbon production, deep processing of raw materials, and long-term supplies of oil and petroleum products. The parties also discussed cooperation in training specialists for the energy industry. Najaf also thanked Mirziyoyev for Uzbekistan’s support in preparations for hosting the FIFA U-20 World Cup in 2027, which Uzbekistan and Azerbaijan are set to organize jointly. Najaf also serves as chairman of the Association of Football Federations of Azerbaijan. Energy cooperation between Uzbekistan and Azerbaijan has expanded significantly over the past year. In 2025, Uzbekistan’s Energy Minister Jurabek Mirzamahmudov said SOCAR and Uzbekneftegaz had established a joint operating company to oversee the Ustyurt project under a Production Sharing Agreement. Mirzamahmudov said seismic surveys covering more than 3,000 kilometers were expected to begin before the end of the year, followed by the drilling of the first exploration well. Last August, Azerbaijani President Ilham Aliyev announced that SOCAR had officially begun operations at an oil field in Uzbekistan. Aliyev said at the time that both sides hoped to make a major oil discovery within the next few years.

Toktogul Reservoir

Kazakhstan, Kyrgyzstan, Uzbekistan Agree on Toktogul Water Releases

Energy and water ministers from Kazakhstan, Kyrgyzstan, and Uzbekistan signed a trilateral protocol in Tashkent on May 7 establishing agreed water release volumes and schedules from the Toktogul Reservoir for the next two months. The Toktogul Reservoir plays a central role in maintaining water and energy stability across Central Asia. The Toktogul Hydropower Plant, located on the Naryn River, the main tributary of the Syr Darya, is Kyrgyzstan’s largest power station and supplies around 40% of the country’s electricity. The reservoir serves a dual purpose: generating electricity for Kyrgyzstan while regulating water flows essential for downstream agriculture in Kazakhstan and Uzbekistan. During winter, Kyrgyzstan typically increases electricity generation to meet heating demand, often lowering reservoir levels and reducing the amount of water available for irrigation during the following spring and summer. According to Kazakhstan’s Energy Ministry, the newly signed protocol removes uncertainty for farmers in southern Kazakhstan at the start of the agricultural season and allows both Kazakh and Uzbek farmers to begin irrigation activities on schedule. To ensure stable water supplies throughout the remainder of the growing season, the three countries agreed to continue coordination in stages. The next ministerial meeting is scheduled for mid-June in Bishkek, where officials plan to finalize water release schedules for the critical summer months of July, August, and September. The agreement highlights the continued functioning of the region’s interstate water-energy exchange mechanism. Coordination over summer irrigation flows was preceded by extensive cooperation during the winter season. From September 2025 to April 2026, Kazakhstan supplied more than 1.5 billion kilowatt-hours of electricity to Kyrgyzstan, helping the upstream country reduce winter water releases for heating and preserve additional reserves in the Toktogul Reservoir for summer irrigation needs in Kazakhstan and Uzbekistan. According to Kyrgyzstan’s Deputy Energy Minister Altynbek Rysbekov, the Toktogul Reservoir held 7 billion cubic meters of water on April 1, 2026, down from 9.14 billion cubic meters on January 1 after the winter heating season. The reservoir’s so-called “dead water level,” the threshold below which turbines can no longer operate, stands at 6.5 billion cubic meters.

Azerbaijan

Uzbekistan and Azerbaijan Plan New Parks in Tashkent and Baku

Uzbekistan and Azerbaijan have agreed to establish new public parks in each other’s capitals as part of broader efforts to expand bilateral cooperation, Uzbekistan’s Ministry of Investment, Industry and Trade has reported. The announcement followed an official visit to Azerbaijan from April 22 to 24 by a delegation led by Minister Laziz Kudratov. During the trip, talks were held with Azerbaijan’s Ministry of Economy and senior executives from major companies on joint projects and future cooperation. According to the ministry, both sides identified several priority areas, including mining, construction materials, transport and logistics, urban planning, agriculture, and pharmaceuticals. Particular attention was given to plans to create an “Uzbekistan” park in Baku and an “Azerbaijan” park in Tashkent, alongside expanding pharmaceutical retail networks and developing fruit and vegetable processing projects. Trade between the two countries has been growing steadily. In 2025, bilateral trade turnover reached $307.3 million, marking a 14.6% increase compared to the previous year, the ministry said. The Times of Central Asia previously reported that trade rose by 25% in 2024, while the number of joint ventures approached 300, with a combined project portfolio valued at around $4 billion. The two countries have set a target of increasing annual trade and investment to $1 billion by 2030, supported by a comprehensive cooperation program covering sectors such as industry, infrastructure, agriculture, healthcare, tourism, and banking. Progress has also been noted in transport and energy cooperation. Both sides highlighted growing cargo volumes along the Trans-Caspian International Transport Route, also known as the Middle Corridor. Uzbek shipments along the route increased by 25% in 2024, exceeding one million tonnes, aided by the introduction of a new electronic permit system.