Russia and Turkmenistan might sign a new 5 year gas deal

Russia and Turkmenistan are holding negotiations to sign a new 5-year contract for the supply of Turkmen gas. TASS with reference to Deputy Minister of Energy of the Russian Federation Anatoliy Yanovsky reports that contract supplies might be launched starting from mid 2019.

According to Yanovsky, the sides are currently discussing the volumes of future gas supplies which depend of the gas price. The official did not rule out the possibility that the volumes might reach the level of 2016 about 10 billion cubic meters a year. The negotiations are scheduled to be completed in June.

Let us recall that Gazprom is expected to purchase slightly over 1 billion cubic meters of gas from mid April to late June.

Kommersant says that a five year term of contract is no coincidence.According to the news outlet, in late 2023 Gazprom intends to launch the production in the Kharasaveyskoye gas field in the Yamal Peninsula and to reach the production volume of 32 billion cubic meters of gas by 2027.

Until that time a new contract with Turkmengas will help Gazprom to meet the increased gas needs in the EU.

It became known yesterday that Turkmengas and Gazprom signed an agreement to cease proceedings in the International Court of Arbitration.

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