Gazprom Surrenders to Turkmenistan
Russia’s gas monopoly, Gazprom, agreed yesterday to buy 162 bln cu meters of gas from Turkmenistan at $100 per 1,000 cu meters during three years, paying $6 bln more than intended as a result. In return, Gazprom will control all export of gas from Turkmenistan to Europe up to 2010. As to the price compromise, it will be enforced on Ukraine actually, the prices for this state may sour up to $140 per 1,000 cu meters in October, the analysts forecast.
Turkmenistan's President Saparmurat Niyazov and Gazprom Chief Executive Alexey Miller sealed an agreement in Ashkhabad September 5, 2006. Russian gas monopoly will buy natural gas from the Central Asian state of Turkmenistan at a higher price of $100 per 1,000 cu meters until the end of 2009, purchasing 12 bln cu meters in 2006 and 50 bln cu meters a year from 2007 to 2009.
Of interest is that only a month ago Miller used to resolutely oppose all attempts of Niyazov to hike the price from $65 per 1,000 cu meters to $100 per 1,000 cu meters.
The agreement cost dear to Gazprom, which will pay in the following three years $16.2 bln for the Turkmen gas instead of $10.5 bln. But the price formula allows selling the gas at from $210 per 1,000 cu meters to $285 per 1,000 cu meters to Poland and Romania already today, so the compromise will hardly mean hefty losses for Gazprom. Nevertheless, it was the first time that the gas monopoly surrendered to high prices of suppliers.
But the yesterday’s agreement will yield material political dividend to Russia. Poland's Prime Minister Jaroslaw Kaczynski is said to head for Washington September 12-16 to propose the joint construction of Trans-Caspian Gas Pipeline running from Central Asia to Europe and by-passing Russia. So, the political friendship of Russia and Turkmenistan is precious today, as only the latter may provide the resource base for the pipeline.
Niyazov manifested his loyalty Tuesday. But in addition to higher gas prices he urged Gazprom to fund one of the fields that hasn’t been developed yet. It is Iolotanskoe field. Niyazov said it will ensure gas deliveries to Gazprom from 2010 to 2035. So, Gazprom will pay even more than $6.5 billion for Turkmen friendship.
Ukraine is the obvious loser in this situation. Now it has no chances to clinch a direct deal with Niyazov and will have to agree to higher prices for gas, which will probably soar from 95$ per 1,000 cu meters to $140 per 1,000 cu meters in the fourth quarter already.
www.kommersant.com
All the Article in Russian as of Sep. 06, 2006
|
