Gazprom Signs Deal to Buy 15.5 bcm of Gas from Uzbekistan

December 29, 2009

Gazprom signs deal to buy 15.5 bcm of gas from Uzbekistan in 2010 

 Gazprom signed a contract on Monday to increase natural gas purchases from Uzbekistan by 4.25 billion to 15.5 billion cubic meters in 2010, the Russian state-controlled energy giant said.

"A contract was signed to buy 4.25 billion cu m of gas in 2010. Taking into account earlier contracts for 2010, Gazprom's portfolio will be 15.5 billion cu m of Uzbek gas," the company said. Gazprom said it will buy gas on a price formula corresponding to European gas market levels, and that the two countries will soon start drafting a longer-term contract.

World gas prices, which experienced a continuous decline since early 2009 driven by the financial crisis, have rebounded since September amid talk of economic recovery and improvement in demand. A Gazprom delegation led by deputy CEO Alexander Medvedev visited Uzbekistan, one of the largest gas producers in the post Soviet space.

The deal came after Russia signed a contract for 30 billion cu m of gas supplies a year with another Central Asian republic, Turkmenistan, last week which agreed to resume deliveries after a months-long dispute over a pipeline explosion.

Russia also transits natural gas, mainly from Turkmenistan, via Uzbekistan. The Central Asia-Center gas pipeline carrying gas to Russia and the pipeline to China pass through Uzbek territory.

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