Uzbekistan supplied gas with a value of $118.6mn to China in 5M23, TASS has reported, citing official Chinese customs statistics.

The figure marked a 60.7% y/y decline. No data on gas volumes delivered were provided.

In May, Uzbek gas worth $78.16mn was piped to the Chinese market, almost twice the amount recorded in April, but far behind the May 2022 figure of $161.5mn. The latter figure was the highest monthly value recorded last year.

Turkmenistan by far remains the main supplier of piped gas to China. In the first five months of the year, it received $4.25bn for gas dispatched to China, up 13.5% y/y. In May alone, China paid out around $730mn for Turkmen gas.

The second largest exporter of gas to China was Russia. It recorded a value of $2.81bn, up more than twofold y/y. Myanmar closed out the top three, with $630.5bn, up 23% y/y.

Kazakhstan's export of gas to its eastern neighbour in 5M23 clocked a revenue figure of $300.1mn, around three-quarters of what was seen in the same period of last year.

bne IntelliNews previously reported on the proposed "gas union" of Russia, Kazakhstan and Uzbekistan. According to an agreement reached on June 16, Russia’s Gazprom will begin exporting gas to Uzbekistan via Kazakhstan in 4Q23 to consolidate winter volumes.

Shaimerden Chikanaev, an oil and gas industry expert, said in an interview with Daryo that Russia’s ultimate goal is to allow Kazakhstan and Uzbekistan to export all their natural gas to China at a higher price, while buying gas from Russia at a lower price for domestic consumption. “This, of course, would be in the interests of Russia," Chikanaev said.

He noted that Uzbekistan was experiencing gas shortages, but was contractually obliged to keep exporting volumes to China.

For Kazakhstan, Russian gas imports would mean ensuring gas supplies for the north and east of the country becoming easier and more profitable, Chikanaev said.

"The proposed trilateral gas union could bring economic benefits to Russia, Kazakhstan and Uzbekistan. But this is possible only if it is used for transit to China," the expert added.