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Ukraine, Turkmenistan Reportedly Reach Gas Deal --> A gas worker in Ukraine checks equipment (epa) 24 February 2006 -- Reports say Ukraine and Turkmenistan have resolved a festering gas dispute.

Turkmenistan had accused Ukraine of owing it $160 million for gas supplies. Oleksiy Ivchenko, the head of Ukraine's state Naftohaz oil and gas company, said earlier this week that Kyiv had no gas debts with Turkmenistan.

ITAR-TASS quoted Ukraine's ambassador to Turkmenistan, Viktor Mayko, as saying Ukraine has agreed to a retroactive five-year plan to buy Turkmen gas. The agreement covers 2002 to 2006.

Mayko says Ukraine will purchase some 40 billion cubic meters of Turkmen gas in 2006 for up to $60 per 1,000 cubic meters.

Gas from Turkmenistan is part of a deal reached between Russia and Ukraine after Russia suspended gas supplies to Ukraine on 1 January.

Central Asia Gas Pipelines

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Russia's rising appetite for Central Asian gas is a direct result of the shifting fortunes of Gazprom, the state-run Russian company that controls lucrative exports. The company's total gas production has flatlined at around 550 billion cubic meters (bcm) a year. With major fields yielding less as they age, Gazprom has chosen to maintain its all-important gas balance by purchasing gas on the side -- from independent producers in Russia and from Russia's Central Asian neighbors -- instead of investing in the lengthy and costly development of untapped Arctic fields...(more)

See also:

Who's Afraid Of Gazprom? Controlling Gas Pipelines