Gazprom inks Central Asian gas transit via Uzbekistan and Uzbek gas procurement contracts for 2005
Led by Yury Komarov and Alexander Ryazanov, Deputy Chairmen of Gazprom’s Management Committee, Gazprom’s delegation paid a visit to Uzbekistan, signing contracts between Gazprom and Uztransgaz to transit Central Asian gas via Uzbekistan and to acquire a total of 5 bcm of Uzbek gas in 2005.
Additionally, the parties reached an accord to expand Russia and Uzbekistan’s joint businesses in the gas industry, as stipulated by a Strategic Cooperation Agreement. In particular, the parties decided to set up joint working groups that would be intensively involved in implementing the Central Asia – Center gas transmission network development project, producing a long-term gas transmission via Uzbekistan contract and preparing a Production Sharing Agreement to develop Uzbekistan’s Ustyurt fields.
With proved reserves accounting for 1.62 tcm, Uzbekistan’s total natural gas reserves exceed 6.25 tcm. At present, the Republic annually extracts 55 bcm of gas, with including 5 bcm being exported to Kazakhstan, Kyrgyzia and Tajikistan. First Uzbek gas reached Russia in May 2003, with 1.27 and some 7 bcm delivered in 2003 and 2004, respectively.
The Uzbekneftegaz National Holding Company and Gazprom entered into the Strategic Cooperation Agreement on 17 December 2002. Among other things, the Agreement stipulates long-term procurement of Uzbek gas over 2003 to 2012, Gazprom’s involvement under the production sharing agreement (PSA) terms in natural gas withdrawal projects in Uzbekistan as well as cooperation in the Uzbek gas transmission infrastructure development and Central Asian gas transmission via the Republic. Cooperation under the PSA terms to maintain gas extraction at the Shakhpakhty field is a pilot gas production project, with the PSA effective since 14 April 2004. Said 0.5 bcm/y project opens way towards implementing under the identical terms a larger gas project in Uzbekistan’s Ustyurt region.
The Central Asia – Center gas transmission network development project is another joint business of Russia and Uzbekistan. The project emphasizes upgrading and expansion of existing and development of new gas transmission capacities in Turkmenistan, Uzbekistan, Kazakhstan and Russia for the purpose of transiting Central Asian gas through the aforementioned countries in the amount fixed by international agreements.
Information Directorate, OAO Gazprom