Gazprom has signed a medium-term gas purchase contract with Turkmenistan. The contract stipulates gas deliveries from Turkmenistan to Gazprom of up to 5.5 Bcm/year (188 Bcf/y). The contractâs term is five years starting on 1 July 2019.   In April 2019, Gazprom resumed gas imports from Turkmenistan after a 3-year interruption. A short-term contract signed earlier in 2019 provided for purchasing up to 1.155 Bcm (40 Bcf) until 30 June 2019.  Background Information  In October 2018, following his meeting with President of Turkmenistan, Gazprom Chairman Mr. Miller said that the company was prepared to resume gas purchases from the country starting on 1 January 2019. Mr. Miller referred to the inter-government agreement between Turkmenistan and Russia on co-operation in gas sphere up to 2028 and a signed contract with the same term. Gazpromâs chairman said that a âcommercial pauseâ in implementing these agreements was coming to an end at the end of 2018. That agreement was signed in 2003 and envisaged export volumes of up to 80-90 Bcm/year.  Following a conflict caused by Gazprom stopping gas imports from Turkmenistan in January 2009, the parties signed a new agreement as an amendment to the 2003 contract. Gazprom agreed to purchase the Turkmen gas based on a formula which would take into account the prices on the European markets. The newly agreed export volume of 30 Bcm was significantly smaller than the preceding volumes which were close to 50 Bcm/year.   Later Gazprom and Turkmengaz signed a take or pay contract that stipulated that Gazprom should buy 10 Bcm of gas from Turkmenistan per annum. However, in 2015, following a disagreement on gas pricing, Gazprom said it wanted to reduce this to 4 Bcm/year and had opted to change the existing agreement through arbitration. Exports were halted in 2016. The arbitration proceedings were cancelled in May 2019.
Turkmenistan, not found