Alexey Miller, Chairman of Gazprom’s Management Committee has met today with Kurmanbek Bakiyev, President of the Kyrgyz Republic.

The parties discussed the prospects for cooperation between Gazprom and the Kyrgyz Republic in the energy sector, reaching an accord to further interact while exploring and producing natural gas, upgrading existing and creating new gas transmission capacities in the Republic and supplying oil products and liquefied natural gases. Additionally the parties reviewed matters surrounding the foundation of a Russian-Kyrgyz joint oil & gas venture.

Reference:

Gazprom and the Government of the Kyrgyz Republic signed a 25-year Agreement on cooperation in the gas industry on May 16, 2003.

In particular, the Agreement stipulates:

• Exploration and development of hydrocarbon fields in the Kyrgyz Republic;
• Upgrading, construction and operation of gas mains and other gas facilities of the Kyrgyz gas complex;
• Gas transmission and delivery while implementing joint projects.

The Agreement also calls for joint rehabilitation of compressor stations at the Mailu-Suu UGS facility and supply of equipment needed for the Kyrgyz gas complex.

In January 2004 Gazprom and the Kyrgyz Republic approved a Plan of paramount activities of Gazprom and the Government of the Kyrgyz Republic aimed at implementing the above mentioned Agreement. The Plan determines the scope and timetable of joint works and types of cooperation when upgrading, constructing and operating gas transportation facilities; jointly exploring and developing fields and rendering various services to the Kyrgyz side.

Within the scope of the Agreement, in January 2006 the parties signed a Memorandum of intentions to set up a Russian-Kyrgyz joint oil & gas venture.

Kyrgyzia’s proved natural gas reserves are estimated at 6 bcm. The Republic faces certain difficulties in developing its gas fields due to their geological complexity and an insufficiently developed gas infrastructure. Kyrgyzia annually produces some 30 mln cu m of natural gas and plans to build up its annual production to 40 mln cu m in 2010.

With its share in the domestic primary energy mix exceeding 30 per cent, natural gas is used in Kyrgyzia’s residential (42 per cent), industrial and power generation (58 per cent) sectors. Natural gas consumption in the Kyrgyz Republic averages 700 mln cu m per annum.