TURKMENISTAN IS GOING TO SIGN A GAS CONTRACT WITH UKRAINE
Turkmenistan is set to sign a 25-year contract for gas supply with the largest consumer - Ukraine - in the middle of this September at the Summit in Yalta. It was stated by the Turkmen Government representative. "Prices and method of payment of the long-term contract are a confidential information for the time being", he said.
Ukraine currently imports 30-35 bcm of gas from Turkmenistan at $44 per 1,000 cu m under a contract that expires in 2006, paying half a price in goods and works in Turkmenistan.
Ukraine consumes up to 70 bcm of gas annually, buying around 26 bcm in Russia and covering the rest of consumption by local gas extraction.
Turkmenistan - the largest Central Asian gas producer - supplies around 50 bcm for the CIS markets annually. By having signed a 25-year contract with the Russian "Gasprom" in April this year, providing for drastic increase in gas deliveries to Russia till 2007, Ashgabat suggested that Moscow and Kiev jointly construct a new gas pipeline through Kazakhstan along the Caspian shore costing $ 1 bln and with a capacity of 30 bcm per year.
President of Turkmenistan Saparmurat Niyazov is looking forward to discussing this project with the Presidents of Russia and Ukraine in coming September in Yalta so that the pipeline is built by 2007.