Russia, Turkmenistan sign Caspian gas accord

Russia and Turkmenistan have signed amendments to a long-term gas purchase and sales contract established in April 2003.

Offshore staff

ASHGABAT, Turkmenistan--Russia and Turkmenistan have signed amendments to a long-term gas purchase and sales contract established in April 2003.

Under the new terms, the two countries will resume the purchase and supply of Turkmen gas from January 1 at volumes of up to 30 bcm/yr.

The price formula will be governed by European gas market conditions.

Based on the negotiations results, the two countries also agreed to jointly implement projects related to construction of the Pre-Caspian gas pipeline and the East-West gas trunkline. Additionally, they discussed opportunities for joint development of hydrocarbons on the Caspian Sea shelf.

The 1,700-km (1,056-mi) Pre-Caspian pipeline is intended to transport gas from fields in the Caspian Sea and other locations in Kazakhstan and Turkmenistan to the Russian Federation. In July 2008, Gazprom formally agreed to participate in investments related to the Turkmen part of the program. Under this accord, the capacity of the Turkmen section of the pipeline will reach up to 30 bcm.

The East-West pipeline is intended to serve as the main link with the Turkmen transmission system. It will also provide gas supplies to Turkmenistan’s population centers.

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