Today, the Gazprom Headquarters has hosted a working meeting between Alexey Miller, Chairman of the Gazprom Management Committee and Igor Chudinov, Minister of Industry, Energy and Fuel Resources of the Republic of Kyrgyzstan.

The parties discussed the prospects of joint business within the execution of the long-term Agreement of cooperation in the gas sector between Gazprom and the Kyrgyz Republic. Particularly, the parties pondered on issues relevant to the progress with natural gas prospecting and production, upgrading, construction as well as joint operating of gas transmission facilities of the Kyrgyz infrastructure. The meeting also discussed the issue on providing joint oil products and LNG deliveries.

The parties signed the Agreement on major principles to provide geological survey at the perspective oil and gas areas in the Kyrgyz Republic.

Reference:

In 2003 Gazprom and the Government of the Republic of Kyrgyzstan signed the long-term Agreement of cooperation in the gas sector for a 25 year period.

The Agreement particularly stipulates:

• hydrocarbon field prospecting, development and operating in the Kyrgyz Republic;
• upgrading, construction and operating of gas mains and other facilities of the Kyrgyz gas complex;
• gas transmission and supply within the joint projects implementation.

The document also stipulates the joint reconstruction of the compressor stations at the Mailu-Suu UGS as well as supply of necessary equipment needed for the Kyrgyz gas complex.

In January 2004 Gazprom and the Kyrgyz Republic approved a Plan of paramount activities for the execution of said Agreement. The Plan determines the scope and timetable of joint works as well as types of cooperation for upgrading, constructing and operating of the gas transmission facilities and joint field exploration and development as well as offering services to the Kyrgyz side.

The Kyrgyz Republic proved natural gas reserves are at 6 bcm. Gas field prospecting faces difficulties because of the geological features and undeveloped infrastructure. The Kyrgyz Republic annually produces nearly 30 mcm of gas. In 2010 the Republic plans to increase its production by 40 mcm of gas.

The natural gas share in the Republic’s fuel and energy balance is equal to more than 30 per cent. Natural gas consumption is at nearly 700 mcm per annum and practically is provided by the gas import.