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Kyrgyzgas sold to Gazprom for $1
May 27, 2013, 9:55 am

[AP]

Gazprom will have to invest over $640 million to modernise and reconstruct the country’s gas infrastructure within five years [AP]

Kyrgyzstan’s government has approved the agreement on Russia-Kyrgyz cooperation in gas transport, distribution and realisation in the territory of Kyrgyzstan.

The agreement aims to provide a long-term and mutually beneficial partnership between Moscow and Bishkek, as well as attracting investment to Kyrgyz gas production.

At the moment Kyrgyzstan does not produce natural gas and is wholly dependent on imports from Kazakhstan and Uzbekistan.

The Agreement stipulates the sale of the country’s debt-ridden Kyrgyzgas national gas company to Russian energy giant Gazprom for a nominal price of $1.

Kyrgyzgas has debts of $38 million and Gazprom will have to invest over $640 million to modernise and reconstruct the country’s gas infrastructure within five years.

This would allow Kyrgyzstan to meet domestic demand for 500 million cubic metres of gas a year.

At the same time Gazprom will get access to the Mailuu-Suu-IV and Kugart gas deposits in southern Kyrgyzstan.

The agreement on the Kyrgyzgas sale was reached during Russian President Vladimir Putin’s visit to Bishkek in late 2012.

President Putin will hold a meetng with his Kyrgyz counterpart Almazbek Atambayev on Monday in Bishkek, as part of the informal meeting of the Collective Security Treaty Organisation (CSTO) heads of state.

Daria Chernyshova

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