Industry and Energy

Industry and Energy

Russia halves price for Turkmen gas

23 December 2009 09:57 (UTC +04:00)

Baku â€“ APA-Economics. Russian media reports have revealed some hidden details of contract amendments on gas supplies signed between the two countriesâ€™ gas monopolies, Gazprom and Turkmengaz, in Turkmen capital Ashgabat in the presence of the Russian and Turkmen presidents.

According to Russian media, Gazprom will pay $195 per 1,000 cubic meters of gas, compared to Turkmengazâ€™s earlier insistence on $375.5 which Russia described as a level above the European market prices.

Interestingly, Gazpromâ€™s draft budget for 2010 envisages $222 per 1,000 cubic meters of Turkmen gas.

That is to say, Gazprom will pay $2.3 billion to Turkmenistan and will earn $2.9 billion for re-exporting Turkmen gas to Europe.

According to plans, Gazprom will buy 11 billion cubic meters of Turkmen gas, targeting the increase of volumes to 30 billion cubic meters later.