Gazprom enhancing Kyrgyzstan’s energy security
April 29, 2014, 17:30
The Gazprom headquarters hosted today a working meeting between Alexey Miller, Chairman of the Company's Management Committee and Djoomart Otorbaev, Prime Minister of the Kyrgyz Republic.
The parties addressed the current state and the outlook for cooperation in the energy sector. Special attention was paid to the affiliation of KyrgyzgazProm (focused on natural gas purchase, transmission and distribution across Kyrgyzstan) to Gazprom Group.
The meeting highlighted that Gazprom's direct access to the Kyrgyz gas market would significantly reinforce Kyrgyzstan's energy security. The Company is already elaborating the issues related to the overhaul and upgrade of Kyrgyz gas transmission and distribution systems, enhancing the reliability of gas supply to end consumers as well as setting more comfortable gas prices for customers. Moreover, the parties addressed socially important programs being implemented jointly with the Kyrgyz Government.
The participants discussed the gas production prospects for Gazprom in Kyrgyzstan. It was noted that the Company would shortly launch survey and exploration activities in the Kugart and Eastern Mailu-Suu IV blocks.
Background
Pursuant to the intergovernmental agreement between Kyrgyzstan and Russia, on April 10, 2014 Gazprom and Kyrgyzgaz signed the Sales and Purchase Agreement for a 100 per cent stake of KyrgyzgazProm, a wholly-owned subsidiary of Kyrgyzgaz. The KyrgyzgazProm assets include over 700 kilometers of gas trunklines, about 2,300 kilometers of gas distribution pipelines as well as 266 gas distribution hubs.
In 2003 Gazprom and the Kyrgyz Republic Government entered into the long-term Cooperation Agreement in the gas industry for a period of 25 years.
In 2007 Gazprom and the Kyrgyz Republic Government signed the Agreement on the common principles for the geological survey of subsurface resources. Under the document, Gazprom obtained two subsurface use licenses for the Kugart and Eastern Mailu-Suu IV blocks.
Kyrgyzstan's proven natural gas reserves are estimated at 6 billion cubic meters. The domestic gas production averages 30 million cubic meters per annum. Gas consumption makes up some 300 million cubic meters per annum, 90 per cent of which is imported from Uzbekistan and Kazakhstan.
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