Led by Alexey Miller, Chairman of Gazprom’s Management Committee, a Gazprom delegation today paid a working visit to Turkmenistan. As part of the visit Alexey Miller met with Tachberdy Tagyev, Deputy Chairman of the Cabinet of Ministers of Turkmenistan.

The parties pointed to their full satisfaction with the operating results based on a long-term contract for gas purchases in Turkmenistan. A focus was placed on the state of implementation of the Pre-Caspian gas pipeline construction project. Discussion also centered on further deepening of bilateral cooperation in hydrocarbon production in Turkmenistan.

As Alexey Miller pointed out at the meeting, “Turkmenistan is a strategic and time-tested partner of Gazprom in providing energy security and gas supply reliability. A most close interaction between Gazprom and Turkmen gas companies is historically predetermined and will consistently evolve. It is absolutely obvious that Gazprom is the company capable of ensuring the best conditions for long-term mutually beneficial cooperation with Turkmenistan”.

Reference:

Russia and Turkmenistan entered into the 25-year Agreement of Cooperation in the Gas Industry on April 10, 2003. Under the Agreement, Gazprom export (a Gazprom wholly owned subsidiary) and Turkmenneftegaz gas transmission company concluded a long-term Contract to purchase and sell Turkmen natural gas throughout the period of the Agreement.

Turkmen gas is supplied via the Central Asia – Center system of transit gas pipelines crossing Uzbekistan, Kazakhstan and Russia. In accordance with the inter-governmental agreements in-place, Gazprom transits Turkmen gas via Russia to Ukraine. Furthermore, under mid-term arrangements Gazprom serves as operator of Turkmen gas transit across Uzbekistan and Kazakhstan.

On May 12, 2007, the Presidents of Russia, Kazakhstan and Turkmenistan signed a Joint Declaration to build the Pre-Caspian gas pipeline.

On December 20, 2007, the Governments of Russia, Kazakhstan and Turkmenistan entered into the Agreement on the Pre-Caspian Gas Pipeline Construction.

The gas pipeline construction is targeted at transporting natural gas from fields in the Caspian Sea and other locations in Turkmenistan and the Republic of Kazakhstan to the Russian Federation.

The volume of gas transportation by the Pre-Caspian gas pipeline is projected to make up:

• up to 10 bcmpa from Turkmenistan;
• up to 10 bcmpa from Kazakhstan.