Uzbekistan: Tanked Energy
Photograph by Denis Sinyakov, AFP/Getty Images
A fuel tanker operated by the state gas company stops near Tashkent, in the mountains of Uzbekistan. The country is a major producer of natural gas, but only a small amount of the fuel makes it to foreign markets.
Almost 80 percent of the gas Uzbekistan produces is sold at cut-rate price on the domestic market, where it used for electricity and heat. Uzbekistan is a world leader in fossil-fuel subsidies, spending $12 billion in 2010, almost one-third of its gross domestic product. That's a higher share compared to national economic output than for any other country.
Money is spent on subsidies instead of badly needed infrastructure upgrades that could aid in economic expansion. In addition to natural gas, Uzbekistan has large oil reserves, yet it pumps and refines a relatively small amount due to antiquated facilities.
The country has been searching for new markets for its natural gas, and recently announced plans to export to China. But Uzbekistan is landlocked and currently lacks the pipelines and other infrastructure needed to expand exports.
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