During May 16-17 Izmir (Turkey) hosted a meeting of dispatchers transiting and utilizing Russian gas in the Ukraine, Moldova, Balkan countries and Turkey.

The meeting was attended by representatives of the following companies: Gazprom, Gazexport, Ukrtransgaz (a Naftogaz of Ukraine subsidiary), Gaztranzit (Ukraine), Moldovagaz (Moldova), Transgaz (Romania), Bulgargaz and Topenergy (Bulgaria), DEPA (Greece), Makpetrol AD (Macedonia), Botas (Turkey).

Gazprom’s delegation was led by Boris Posyagin, Head of the Central Gas Flow Dispatching Department (CGFDD). At the meeting he reported on successful operation of the United Gas Transmission System (UGTS) of Russia during the autumn/winter 2005-2006 heating season and results of the interaction between dispatch departments of transit countries.

“Coordinated activities of Russian gas transit operators on the Balkan route represent an example of businesslike and highly effective cooperation providing for the reliable and accident-free operation of all gas transmission systems along the Russia - East Europe - Turkey route,” – said Boris Posyagin.

The reporter emphasized that in 2005 gas deliveries to Balkan countries and Turkey had been steady with more than 22 bcm conveyed, which is 22 % up on 2004, despite last winter’s rather severe climatic conditions on the whole Eurasian continent. And this fact, according to the Head of CGFDD, pointed once more to the necessity and importance of close cooperation between transit operators and importers. A new information system of dispatch data exchange and an updated Integrated Technological Scheme of Russian Gas Transit are being developed to promptly resolve dispatcher interaction issues.

Boris Posyagin noted that the Balkan export route, by which the Company delivered steadily increasing Russian gas volumes, was of strategic importance for Gazprom. Besides, bringing the Blue Stream gas pipeline to its full capacity as well as the company’s intentions to expand its regional presence, including by conquering new markets, will contribute to further development of economic cooperation between Gazprom and both Balkan and Middle East countries. The Head of CGFDD expressed his confidence that Gazprom would continue playing the role of reliable gas supplier, and the company’s dispatch department would do its best to fully secure Russian natural gas exports in compliance with contract liabilities.

The meeting heard reports on the current technical condition and operating results of the Balkan gas transmission system in 2005 and the first quarter of 2006. The participants discussed issues surrounding interaction between dispatchers while organizing gas deliveries, reviewed the fulfillment of contractual export obligations as well as the progress in scheduled preventive maintenance and new capacity commissioning.

At the end of the meeting the parties signed a prompt interaction protocol identifying a need to deepen cooperation between Russian natural gas transit countries’ dispatchers and importers in 2006, which would contribute to higher security of gas deliveries to the Balkans as stipulated by existing long-term contracts between Gazprom and foreign companies.