Experts comment on Turkmen gas deal

The deal between Gazprom and the Turkmen government on purchases of Turkmen gas at $44 for every 1,000 cubic meters will enable the Russian gas giant to increase its sales volumes with relatively low expenses, NIKoil analysts believe. This gas price is equal to prices of Gazprom gas exports to CIS countries and more than two times higher than domestic gas rates.

As reported earlier, Gazprom's subsidiary Gazexport will buy 5bn-6bn cubic meters of gas from Turkmenneftegaz in 2004 at $44 for every 1,000 cubic meters. The agreement was achieved at yesterday's meeting of Turkmen President Saparmurat Niyazov and Gazprom CEO Alexey Miller who signed an agreement on cooperation for 25 years.

In accordance with the signed document, in 2005 Turkmen gas exports will advance to 6bn-7bn cubic meters, up to 10bn cubic meters in 2006, 60bn-70bn cubic meters in 2007, 63bn-73bn cubic meters in 2008 and from 70bn to 80bn cubic meters starting from 2009.