Gazprom EP International, operator of Gazprom's projects abroad, is increasing gas production in Uzbekistan by 1.4 times compared to the previous year - up to 300 million cubic meters, the company said.

"Natural gas production from the Shakhpakhty field reconstruction and redevelopment of which is carried out by Gazprom International since 2004, will be about 300 million cubic meters at the end of this year, or about 20 million cubic meters more compared to the design level," Gazprom International said.

According to the company, about 280 million cubic meters of gas has been produced from the field which is located in north-western Uzbekistan, and growth in output at Shakhpakhty amounted to almost 40 per cent compared to the previous tear.

During 2012, Gazprom International experts overhauled and commissioned five new wells. At present the operational fund deposits increased to 16 wells, the average gas production is 956,000 cubic meters. The total of 19 wells should be restored in accordance with the project.

The total volume of gas produced in Shakhpakhty since 2004 amounted to 2.1 billion cubic meters.

The Shakhpakhty gas field is located in Uzbekistan, in the south-eastern part of the Ustyurt. The field was discovered in 1962. The initial commercial gas reserves amounting to 46.5 billion cubic meters are approved as a result of exploration held here until 1968.

Commercial production began on Shakhpakhty in 1974 and amounted to 2.5 billion cubic meters per year. The Shakhpakhty booster station was commissioned in 1983. It was stopped due to insufficient power supply for the gas produced to the required inlet pressure in February 2002.

Then the production ceased and the wells conserved in accordance with the decision of the operating organisation. Some 36.5 billion cubic meters of gas which is about 78.5 per cent of the initial approved reserves was extracted from the field.

At present, the recoverable reserves at Shakhpakhty are estimated at eight billion cubic meters.

The reconstruction and development of Shakhpakhty is a pilot project of Gazprom International in Uzbekistan, which is being implemented on terms of a PSA signed for a period of 15 years in 2004.

In 2004, Zarubejneftegaz - GPD Central Asia Operating Company was created as an operator, and is currently one of Gazprom International's operating structures.

According to the agreement terms, the company carries out construction and field development, production and the transportation of raw materials, the construction of relevant infrastructure, gas cleaning, storage, and environmental activities, as well as other necessary related actions.

Gas production was restored at the field in August 2004; commercial flow was obtained from 10 wells. In 2006, the operating company completed repeated construction of Shakhpakhty booster station and a preliminary gas development installation, a modern camp was also built at the field.

The gas produced at Shakhpakhty is supplied to the Karakalpak compressor station, and then to consumers through the Central Asia - Center gas pipeline. The investment into the project amounted to $25 million.

Since 2004, as part of the license for development of four field formations, work is carried out on the overhaul of fields and the production of raw materials.

In 2010, the operator received a license for the development of three additional downstream production formations. In February of this year, Gazprom announced the completion of exploration in Uzbekistan's Ustyurt region totaling $ 400 million.

According to the country's State Statistics Committee, between January and September of 2012, natural gas production in Uzbekistan decreased by 1.4% to 45.595 billion cubic meters.

Inter-governmental Council on Clean Development Mechanism (CDM) of Kyoto Protocol of Uzbekistan approved agreements on purchase of certified emission reduction on CDM-components within four projects of Uzbekenergo state joint stock company, National Body on Clean Development Mechanism of Uzbekistan said.

According to national body, intergovernmental council approved a project "Expanding Talimardjan thermal power station with construction of two combined-cycle plants with a capacity of 450 MW" and "Construction of combined-cycle plant with the capacity of 370 megawatt at Tashkent thermal power station".

It is expected that the modernization of stations will allow to cut 1.543 million tonnes of CO2 emission a year. Currently, the average price of certified emission reduction makes up 6.76 euros per tonne (EUA price). The raised funds will be directed to modernization of thermal power stations.

The Council also approved projects "Construction of combined-cycle plant at Navoi thermal plant" and "Expanding Navoi thermal power station with construction of the second combined-cycle plant with the capacity of 450 megawatt".

The body said that CDM components of these projects will be implemented by Uzbekenergo in cooperation with Synecta a.s (Czech Republic).

Almost 220,000 people in Uzbekistan will benefit from a US$82 million IDA Credit, approved by the World Bank's Board of Directors today. The Alat and Karakul Water Supply Project will improve the coverage, quality and efficiency of public water supply service in the districts of Alat and Karakul in the Bukhara region of Uzbekistan. By the time the project is completed, the network of water supply service delivery in the region will have been improved, institutional capacity of the water suppliers strengthened, and financial sustainability improved.

The two southern districts of Alat and Karakul in the Bukhara region face one of the most insecure water supply situations in the country. In the 70's, with the growing depletion and salinization of local groundwater resources, a trunk line system was built to mobilize freshwater from the Amu-Bukhara canal, and provide potable water service to the towns of Alat and Karakul. Network coverage of rural areas was however not implemented at the time. Today, after two decades of underfunded operations and maintenance, the trunkline and urban systems are in a deep state of disrepair, functioning well below capacity, with no effective water treatment.

Nearly 80 percent of the districts' population still lives in rural areas with no piped water supply, relying on unsafe water drawn from irrigation channels and saline wells, or bought at high cost from tanker trucks. The lack of access to potable water is having crippling effects on human and economic development in both the urban and rural areas of the districts, and the project is urgently needed to alleviate them. The project will combine the rehabilitation of existing water production, transmission and distribution infrastructure with the development of new networks to cover unserved rural areas.

"The Alat and Karakul Water Supply Project responds to the Government's commitment to upgrade access and quality of water supply and sanitation services in urban and rural areas," says Takuya Kamata, World Bank's Country Manager for Uzbekistan. "The Project will contribute to human development and social inclusion through improved health and productivity benefits. It will also change the daily lives of women contributing to gender advancement. The project will provide benefits in increased capacity, efficiency and accountability in public service provision, thus also improving local governance outcomes for citizens".

The Project is aligned with the 2012-2015 Country Partnership Strategy objective of supporting infrastructure efficiency and social inclusion elements.

Four main components of the project include: Improvement of Water Supply Infrastructure (US$108.6 million), Institutional Strengthening and Capacity Building (US$2.21 million), Studies for Future Investments (US$0.37 million) and Project Management (US$2.34 million).

Uzbekistan joined the World Bank in 1992. The World Bank's mission in the country is to improve people's livelihoods through being a partner in economic reforms, supporting the modernization of the country's social sectors and infrastructure, and sharing its knowledge and experience with the government and the people of Uzbekistan.

Total current World Bank commitments to Uzbekistan amount to US$812.5 million.