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Thursday, March 20, 2008

Gazprom pushed to pay more

13 March 2008 - Upstream OnLine - Kazakhstan wants Russian giant Gazprom to pay more for the transit of Turkmen and Uzbek gas in 2009 when the latter states start charging more for their gas, the head of the Kazakh state energy firm said today. Gazprom said last week it had agreed to buy gas from Uzbekistan, Kazakhstan and Turkmenistan at prices close to that it charges European customers, minus transport and other costs. "If the gas we buy becomes more expensive then, logically, the tariff will also grow," Uzakbai Karabalin, head of state oil and gas firm KazMunaiGas told Reuters. This year Kazakhstan raised the transit fee to $1.4 per 1,000 cubic metres per 100 kilometres from $1.1, following price increases by both Turkmenistan and Uzbekistan that sell their gas to Gazprom. Turkmenistan exports about 50 billion cubic metres of gas a year. Uzbekistan sells about 9 Bcm while Kazakhstan shipped abroad 7 Bcm last year. Kazakhstan uses a small amount of the natural gas going through its territory to power its pipeline pumps.

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