22.04.03

Ukraine, Turkmenistan to sign long-term agreement on gas supply

Ukraine and Turkmenistan plan to sign a 25-year contract on gas supply after their current agreement expires in 2007, Yury Boiko, CEO of Naftohaz Ukrainy, said at a news conference on Friday.

Boiko said that the existing contract, which envisions shipping 35- 40 billion of cubic meters of gas annually, is a success. "We are in general satisfied with our cooperation with Turkmenistan," he said.

The official said that his company will complete its assessment of the feasibility study of a gas pipeline project in the Caspian region and will determine the required size and stages of investments.

He noted that Ukraine plans to build 780 kilometers of a 1,070- kilometers gas pipeline that will be built in Kazakhstan.

Earlier reports indicated that Turkmen President Saparmurat Niyazov invited Ukraine to take part in the construction of the Caspian gas pipeline's $1 billion northward section, which is expected to have a capacity of 30 billion cubic meters of gas a year. This gas pipeline will be built under the existing Turkmen- Ukrainian gas sales contracts.

Niyazov said that the gas pipeline will initially carry oil from Turkmenistan's off-shore Caspian oil fields.