Russia’s Gazprom signs deal with Uzbekistan to buy 4 bcm of gas for five years

Russian energy company Gazprom has signed a deal with Uzbekistan to purchase 4 billion cubic meters of gas annually within five years beginning 2018.

This is the first medium-term contract on purchase of Uzbek gas by Gazprom on a price formula.The agreement was signed by Chairman of Gazprom Management Committee Alexey Miller and Uzbekistan’s Deputy Prime Minister Gulomjon Ibragimov.

It was previously reported that Russia bought 6.2 billion cubic meters of gas in Uzbekistan in 2016 and plans to buy 5 billion cubic meters in 2017.

Meanwhile, within the agreements reached during the visit of Uzbekistan’s president to Russia, Gazprom will continue work on existing projects, in particular, on the Shakhpakhty project in Ustyurt, where more than 3.5 billion cubic meters of gas has been produced to date. The current production sharing agreement (PSA) on this project will be extended for additional five years.

In August 2004, Gazprom started the natural gas production at the Shakhpakhty field in Ustyurt with design capacity of 500 million cubic meters based on a PSA with a 15-year term.

An agreement was also reached on the resumption of work on the gas condensate field Jel, discovered by Gazprom in 2009. It is planned to sign a PSA within this project that will be based on results of the project’s feasibility study.

Moreover, Gazprom is taking part in the implementation of projects to study and develop the fields of Gissar region, on utilization of associated petroleum gas, as well as the development of activities of the country’s leading industrial design institute.