Alexey Miller, Chairman of the Gazprom Management Committee met with Turkmen President Gurbanguly Berdymukhammedov in Ashgabat today as part of the preparation for the Russian President Dmitry Medvedev’s visit to Turkmenistan.

During the meeting the parties expressed their full satisfaction with the ongoing interaction between Gazprom and Turkmenneftegaz based on a long-term gas purchase contract.

“Gazprom and Turkmenistan are reliable and time-proven partners,” stated Alexey Miller summarizing the meeting results. “We are confident that our cooperation will be further strengthened and developed,” he pointed out.

Background:

Russia and Turkmenistan entered into a 25-year Agreement of Cooperation in the Gas Industry on April 10, 2003. Under the Agreement, Gazprom export (Gazprom’s wholly owned subsidiary) and Turkmenneftegaz gas transmission company concluded a long-term contract to purchase and sell Turkmen natural gas throughout the period of the Agreement.

Turkmen gas is supplied through the Central Asia – Center system of transit gas pipelines crossing Uzbekistan, Kazakhstan and Russia. In accordance with inter-governmental agreements Gazprom transits Turkmen gas via Russia to Ukraine.

Furthermore, under mid-term contracts Gazprom serves as an operator of Turkmen gas transit across Uzbekistan and Kazakhstan.

On May 12, 2007, the Presidents of Russia, Kazakhstan and Turkmenistan signed a Joint Declaration to build the Precaspian gas pipeline.

On December 20, 2007, the Governments of Russia, Kazakhstan and Turkmenistan entered into the Agreement on the Precaspian Gas Pipeline Construction.

The gas pipeline construction is targeted at transporting natural gas from fields in the Caspian Sea and other locations in Turkmenistan and the Republic of Kazakhstan to the Russian Federation.

The volume of gas transportation through the Precaspian gas pipeline is projected to make up:

• up to 10 bcmpa from Turkmenistan;
• up to 10 bcmpa from Kazakhstan.