Russ Oil-Gas

02–01–2009 – Charter 97 – An additional agreement to the acting contract of Beltransgaz and Gazprom on gas prices for Belarus in 2009 was signed last week. But price of Russian gas is being kept in secret. “An additional agreement on conditions of gas supplies to Belarus in 2009 to the acting 4-year contract was signed last week,” a representative of Beltransgaz said. But the official didn’t name entry gas price for the first quarter of the year, he just said “we will see gas prices for January when we will sign delivery acceptance acts in February”. According to him, the pricing formula wasn’t changed, but it was necessary to make an additional agreement because the Belarusian party had provided for “many positions that may help us to insure ourselves”. In particular, due to sharp reduction in costs of oil and oil products, to which the gas pricing formula is pegged, the additional agreement cancels the requirement not allowing gas price for Belarus to fluctuate by 7 per cent. As it has been informed, the Belarusian authorities count that average price of gas supplies in 2009, taking into account corrections, proposed in the additional agreement, will amount to $148 per 1,000 cubic meters against $129 per 1,000 cubic meters, Belarus has paid since April 1, 2008 ($119 per 1,000 cubic meters since january1, 2008). Gas price for Belarus hasn’t changed during 2008. As experts estimate, entry gas prices in the first quarter of the year will amount to not less than $200 per 1,000 cubic meters taking into consideration oil price development with a 6-month lag and average gas price of $148.