Source: Gazprom increased natural gas purchases from Uzbekistan

Source: Gazprom increased natural gas purchases from Uzbekistan

MOSCOW, January 4. “Gazprom” from 1 January 2016 increased purchases of natural gas from Uzbekistan, a source in gas monopoly familiar with the situation.

“The agreement to increase purchases of Uzbek gas was achieved in late December of last year,” he said, without giving details.

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At the same time “Gazprom export” has informed “Turkmengaz” on the termination from January 1 of the current year purchase of Turkmen natural gas.

According to the press release “Turkmengaz”, “the basis for this decision lies with the changed conditions on the international gas market, as well as selected economic and financial issues arising from “Gazprom export”. However, Turkmengaz declares readiness for negotiations with the Russian partner “on a broad range of issues related to economic ties between the two economic subjects”.

At the beginning of December 2015, the Deputy Chairman of the Board “Gazprom” Valery Golubev told reporters that the gas monopoly does not consider it necessary to initiate a change in intergovernmental agreements for the cessation of gas purchases in Central Asia, although now it is economically disadvantageous. According to him, contracts for the purchase of Turkmen and Uzbek gas were signed many years ago, today it is becoming economically feasible, but it is executed intergovernmental agreements that contain obligations.

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Golubev said that on the level of the intergovernmental agreement “Gazprom” changes are not initiated, because “that’s not necessary”.

Uzbekistan gas production ranks third among the CIS countries and is among the ten largest gas producing countries of the world (63-65 billion cubic meters of gas per year).

In December 2002 Gazprom and Uzbekneftegaz signed a strategic cooperation Agreement, which provided for the purchase of Uzbek gas in 2003-2012, as well as the participation of Russian companies in projects in the field of natural gas production on the territory of Uzbekistan.
At the end of 2012 “Gazprom” has concluded with the Republic of the agreement on gas supplies until 2015. According to the contract, in 2013, we delivered 7.5 billion cubic meters (in 2012 – 8.7 billion cubic meters). The cost of purchased gas is determined by a formula based on average European gas prices.

Since 2006, Gazprom is also developing new fields in the Ustyurt region of Uzbekistan. The volume of investments of Russian companies in exploration in 2006-2013 was $383.3 million