The results of Alexey Miller and Nikolay Tanaev’s working meeting
Alexey Miller and Nikolay Tanaev discussed the implementation of the Plan of Paramount Joint Activities within the frames of the long-term Agreement on Cooperation in the Gas Industry signed between Gazprom and the Kyrgyz Republic. The parties discussed the issues regarding natural gas exploration and production as well as upgrading and modernization of existing and construction of new gas transportation capacities in the Kyrgyz Republic. At the same time, Mr Miller and Mr Tanaev discussed the possibility of Gazprom’s participation in the tender on transferring Kyrgyzneftegaz’s state-owned shares under trust management.
On May 16, 2003, Gazprom and the Government of the Kyrgyz Republic signed a 25-year Agreement on Cooperation in the Gas Industry.
In particular, the Agreement envisages:
- Exploration and development of hydrocarbon fields in the Kyrgyz Republic
- Upgrading, construction and operation of gas mains and other gas infrastructure facilities of the Kyrgyz gas complex
- Gas transportation and delivery while implementing joint projects
The Agreement also envisages joint rehabilitation of compressor stations at the Mailu-Suu UGS facility and equipment procurement for the Kyrgyz gas complex.
In January 2004, Gazprom and the Kyrgyz Republic approved the Plan of Paramount Joint Activities for implementing the above mentioned Agreement. The Plan determines the scope and timetable of works to be executed and types of cooperation to upgrade, construct and operate gas transportation facilities; to jointly explore and develop gas and oil fields; to render services to the Kyrgyz party.
To fulfil the tasks envisaged in the Agreement, Zarubezhneftegaz, a Gazprom’s subsidiary, finished preliminary work and started registering its subsidiary in the city of Bishkek (Kyrgyzia’s capital).
Kyrgyzia’s natural gas reserves are estimated at 6 bcm. The Republic faces certain difficulties in developing its gas fields due to geological complexity of the fields and the undeveloped gas infrastructure. Kyrgyzia annually produces some 30 million cubic meters of natural gas and plans to build up its annual gas production up to 40 million cubic meters in 2010.
Natural gas share in the Kyrgyz fuel and energy balance exceeds 30%. Natural gas is used in the residential sector (42%) and the industrial and power generation sectors (58%). Kyrgyzia annually consumes some 700 million cubic meters of natural gas imported, to a large extent, from Uzbekistan.
Total length of the Kyrgyzian gas pipelines (inclusive gas distribution networks) accounts for some 600 km.
Information Directorate, OAO Gazprom