Gazprom agrees on terms of delivery of Turkmen gas in 2009

MOSCOW. January 2. KAZINFORM The Russian gas monopoly Gazprom has agreed on the terms of delivery of Turkmen gas in 2009.

Gazprom?s information department reported on Thursday that a supplement agreement to the long-term purchase and sale contract had been signed. The document provides for a price formation formula based on European gas prices. Russia and Turkmenistan signed a 25-year gas cooperation agreement on April 10, 2003. Gazprom Export, Gazprom?s sister company, and the state company Turkmenneftegaz signed a long-term purchase-sale contract for Turkmen gas for a period of validity of the aforesaid agreement. ?Turkmen gas is supplied via a network of transit gas pipelines ?Central Asia-Centre? which run via the territories of Uzbekistan, Kazakhstan and Russia. In compliance with inter-governmental agreements, Gazprom ensures the transit of Turkmen gas via the territory of Russia to Ukraine. Besides, under mid-term contracts, Gazprom also acts as an operator for the transit of Turkmen gas via the territories of Uzbekistan and Kazakhstan. Gazprom didn?t specify at what price it was going to buy the Turkmen gas. However, Russian Prime Minister Vladimir Putin told Russian President Dmitry Medvedev last Wednesday that the Central Asian republics had begun selling gas at world prices in 2009, and Gazprom would now have to buy it at a price of $340 per one thousand cubic meters. ?If transit prices are added to this price, the price of gas for Ukraine will be $380 per one thousand cubic meters,? the Russian prime minister said. Putin said that Gazprom had offered Kiev to buy gas at a price of $250, which Moscow considered to be very favourable. However, Kiev rejected that proposal. Because there?s no new contract, Gazprom turned off the tap for Ukrainian consumers at 10:00 in the morning on January 1, 2009, Kazinform refers to ITAR-TASS.