Gazprom May Stop Buy Gas from Turkmenistan and Uzbekistan

It is reported that Gazprom, the Russian energy giant plans to stop buying gas completely from Turkmenistan and Uzbekistan. 

 

Gazprom intends to give up purchasing gas from Turkmenistan and Uzbekistan recently. However, it needs to abolish all of contracts signed by two governments. At present, abolishing is being carried out.

 

It is pointed that the news that Russia is preparing for giving up purchasing gas from Central Asia is groundless. In June, C Line of China-Central Asia gas pipe was put into operation formally. Annual gas transmission capacity was designed to 25 billion cubic meters. Among that, Uzbekistan and Turkmenistan supply 10 billion cubic meters. Other 5 billion cubic meters of gas is supplied by Kazakhstan. What’s more, D Line of China-Central Asia gas pipe has already been started whose annual gas transmission capacity is 30 billion cubic meters. By the end of 2020, 4 lines of China-Central Asia gas pipe can transmit as high as 85 billion cubic meters per year.

 

Uzbekistan began to supply gas toRussiasince May in 2003. At the end of 2012, Gazprom signed purchasing & transmission contract in 2013-2015 withUzbekistan. According to contract,Uzbekistanexported 7.5 billion cubic meters of gas toRussia. However,Uzbekistanmay compensateRussiafor reducing gas supply toRussiabecause of increasing gas supply toChina. Currently, yield of gas inUzbekistanis 63 billion cubic meters to 65 billion cubic meters per year. Demand inUzbekistanis about 50 billion cubic meters. In consideration of quantity of gas supplied fromUzbekistantoRussia, there is no much left toRussia.

 

Turkmenistan has sufficient gas to export. But Turkmenistan exported only 7.5 billion cubic meters of gas to Russia in  2013. Turkmenistan also has problem on gas supply to Russia in this year and next year. Several years ago, all of gas exported by Turkmenistan was purchased from Gzprom in fact, including over 47 billion cubic meters of gas in 2008 and planned 51 billion cubic meters in 2009. However, for the most serious financial crisis in 2009, Russia abandoned large-scale gas import which resulted in cool relationship between Ashkhabad and Moscow. Under the circumstance, Turkmenistan started to increase gas export to China. It also plans to increase annual export volume of gas to China to 40 billion cubic meters per year by the end of 2016. 


Gazprom May Stop Buy Gas from Turkmenistan and Uzbekistan

Oct 10,2014
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