[Excerpt: Turkmenistan is contracted to supply 6 billion to 7 billion cubic meters of gas this year to Gazprom and 10 bcm in 2006. In 2007, imports from Turkmenistan are set to climb steeply to 60 bcm to 70 bcm. >From 2009 onwards the volume is set to increase even further to 70 to 80 bcm. Last year, Gazprom exported 157 bcm to Europe.]
http://64.39.15.16/stories/2005/04/18/041.html Monday, April 18, 2005. Issue 3148. Page 5. Miller: Turkmen Gas Deal On Again By Catherine Belton Staff Writer Sergei Grits / AP Gazprom's take from Turkmenistan is set to increase significantly, accounting for a third of gas exports to Europe. Turkmenistan agreed to renew gas supplies to Russia after Gazprom CEO Alexei Miller held crisis talks with President Saparmurat Niyazov in Ashgabat last week, the company said Friday, without saying when the taps would be turned back on. Turkmenistan, which is set to play a vital role in filling shortfalls in Gazprom's production, switched off supplies on Jan. 1 in a dispute over pricing. The embargo fueled concerns over the stability of future imports. Niyazov has now agreed to stick with the previously agreed price of $44 per 1,000 cubic meters for 2005 and 2006, Gazprom said in a statement. In return, the company said it would pay for the gas exclusively in cash, as opposed to the current arrangement of 50 percent in cash and 50 percent in goods. "A. Miller and S. Niyazov agreed to strictly adhere to the terms of current agreements and contracts, including on gas prices for Russia," the statement said. But Gazprom spokesman Andrei Chernykh declined to say when the Turkmens will turn back on the taps, and the spokesman of the Turkmen Embassy was unavailable for comment Friday. Niyazov turned off gas supplies in January after Gazprom refused to agree on a 30 percent price hike. Miller already traveled to Ashgabat in February but failed to bring back a deal at the time. Even if the current crisis is over, the gas company will next year have to return to the negotiating table to hammer out prices for 2007 to 2028, when Gazprom's long-term contract with Ashgabat runs out. In 2007, Gazprom's take from Turkmenistan is set to increase significantly, accounting for one-third of what the gas giant is expected to export to Europe. Reaching an agreement with Ashgabat will be essential for Gazprom to ensure the stability of supplies to Europe. Imports from Turkmenistan will be needed to fill the gap left by declining production at Gazprom's three main fields, while the company seeks the tens of billions of dollars necessary to develop new projects in the Far North. With domestic and European demand likely to soar, a high degree of dependence on Turkmen supplies is looking increasingly dangerous, said United Financial Group's co-head of research, Stephen O'Sullivan. The recent standoff "highlights how risky relying on Turkmenistan is," he said. Turkmenistan is contracted to supply 6 billion to 7 billion cubic meters of gas this year to Gazprom and 10 bcm in 2006. In 2007, imports from Turkmenistan are set to climb steeply to 60 bcm to 70 bcm. From 2009 onwards the volume is set to increase even further to 70 to 80 bcm. Last year, Gazprom exported 157 bcm to Europe. Adding to the risk for Gazprom, the new Ukrainian government appears to be seeking greater energy independence from Russia with a rival bid for Turkmen gas. Kiev, which already agreed to pay $58 per 1,000 cubic meters after Ashgabat briefly cut supplies earlier this year, is preparing a rival bid to compete with Gazprom's, Kommersant reported last week. enditem ------------------------ Yahoo! Groups Sponsor --------------------~--> Give underprivileged students the materials they need to learn. Bring education to life by funding a specific classroom project. http://us.click.yahoo.com/FHLuJD/_WnJAA/cUmLAA/TySplB/TM --------------------------------------------------------------------~-> -------------------------- Want to discuss this topic? 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