Led by Alexey Miller, Chairman of the Management Committee, Gazprom’s delegation has traveled today to Kyrgyzstan, meeting with Kurmanbek Bakiyev, Kyrgyz President and Felix Kulov, Kyrgyz Prime Minister.

The main focus of the meetings fell on matters surrounding the Kyrgyz oil & gas industry development and Gazprom’s involvement in energy projects in the Republic.

Within a long-term Agreement on cooperation in the gas industry between Gazprom and the Kyrgyz Republic Alexey Miller and Felix Kulov signed a Memorandum of intentions to set up a joint Russian-Kyrgyz oil & gas venture.

The Memorandum contains accords to further deepen successful cooperation while developing strategic projects, namely exploring and producing natural gas, debottlenecking existing and creating new gas transmission capacities in the Kyrgyz Republic, and supplying refining products and liquefied hydrocarbon gases.

The parties confirmed mutual interest in further contributing to mutually beneficial partnership ties between Gazprom and Kyrgyz energy firms.

Reference:

Gazprom and the Government of the Kyrgyz Republic signed the 25-year Agreement on cooperation in the gas industry on 16 May 2003.

In particular, the Agreement stipulates:

 - Exploration and development of hydrocarbon fields in the Kyrgyz Republic;

 - Upgrading, construction and operation of gas mains and other gas facilities of the Kyrgyz gas complex;

 - Gas transmission and delivery while implementing joint projects.

The Agreement also calls for joint rehabilitation of compressor stations at the Mailu-Suu UGS facility and supply of equipment needed for the Kyrgyz gas complex.

In January 2004 Gazprom and the Kyrgyz Republic approved a Plan of paramount activities of Gazprom and the Government of the Kyrgyz Republic aimed at the above mentioned Agreement implementation. The Plan determines the scope and timetable of joint works and types of cooperation when upgrading, constructing and operating gas transportation facilities; jointly exploring and developing fields and rendering various services to the Kyrgyz side.

Kyrgyzia’s proved natural gas reserves are estimated at 6 bcm. The Republic faces certain difficulties in developing its gas fields due to their geological complexity and an insufficiently developed gas infrastructure. Kyrgyzia annually produces some 30 mln cu m of natural gas and plans to build its annual production up to 40 mln cu m in 2010.

With its share in the domestic fuel and energy basket exceeding 30 per cent, natural gas is used in Kyrgyzia’s residential (42 per cent), industrial and power generation (58 per cent) sectors. Natural gas consumption in the Kyrgyz Republic averages 700 mln cu m per annum.