Uzbekistan's Integration Into Middle Corridor Likely To Bolster Energy Sector - Analyst
Date
5/31/2024 3:10:28 PM
(MENAFN- Trend News Agency) BAKU, Azerbaijan, May 31. Uzbekistan'sintegration into the Middle Corridor, a segment of the Silk Roadinitiative, could positively impact the development of the energysector, economist and researcher Ulugbek Kamaletdinov told Trend .
"Today, the Trans-Caspian transport route is fully revealing itspotential, contributing to the transportation of energy resourcesand the development of energy infrastructure in the region," hesaid.
The expert noted that there have been recent discussions aboutexporting electricity from Kazakhstan and Uzbekistan to Europethrough Azerbaijan. This initiative will strengthen the region'scountries as electricity suppliers.
"The unification of the region's energy systems and the exportof electricity to Europe offer several advantages. Exportingelectricity to Europe allows these countries to diversify theirincome sources and stimulate economic growth. This is particularlyimportant given Uzbekneftegaz's recent announcement to participatein the Shah Deniz gas field project in the Azerbaijani sector ofthe Caspian Sea. This development opens new opportunities forattracting investment, advancing the energy sector, and creatingjobs," Kamaletdinov said.
He stated that expanding sales markets helps reduce dependenceon individual markets and diversify income sources, which decreasesrisks and enhances the sustainability of the region's energysystem. However, exporting electricity to Europe will necessitatethe development and improvement of transportation infrastructure,including power grids and highways.
"In other words, the success of the Middle Corridor hinges onenhancing the entire logistics infrastructure and ensuring thecoherence of the transportation system between China and theEuropean Union. Support from China and the active participation ofall involved parties are essential for the project's successfulrealization," the expert added.
To note, the Middle Corridor connects the container rail freightnetworks of China and the European Union through Central Asia, theCaucasus, Türkiye, and Eastern Europe, while also linking the ferryterminals of the Caspian and Black Seas with the railway systems ofChina, Kazakhstan, Azerbaijan, Georgia, Türkiye, Ukraine, andPoland.
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