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Price for Imported Gas My Increase in Ukraine to $200 per 1 thousand cu m

Oil&Gas Materials 28 November 2007 17:56 (UTC +04:00)
Price for Imported Gas My Increase in   Ukraine to $200 per 1 thousand cu m

Ukraine, Kiev / Тrend corr Z. Novosvitski / Rise in Turkmen gas prices for Russian Gazprom to $130 per 1,000 cu m in fact changes the forecasted price for gas imported to Ukraine - $160 per 1,000 cu m, the senior economist in the International Centre for Prospective Researches ( Ukraine) Ildar Gazizulin said on 28 November.

"I believe this year the sides will set a new higher price for 2008. The range of possible prices varies between $160 and $200 per 1,000 cu m," he said.

"Russian Gazprom agreed with Turkmenistan to increase price for imported gas to $130 per 1,000 cu m in the first half of 2008 from $100 per 1,000 cu m which was in 2007. Price for second half of 2008 was set as $150 per 1,000 cu m.

Through its subsidiary Gazprom Export LLC, Russian Gazprom purchases gas produced in Turkmenistan, Uzbekistan and Kazakhstan and sells it to RosUkrEnergo AG (Switzerland), 50% stocks of which belongs to Gazprom.

RosUkrEnergo delivers the gas to Russia's border on Ukraine and there sells it to Ukr-Gaz-Energo CJSC. This company supplies a part of the gas to Ukrainian consumers and sells another part to Naftogaz of Ukraine for further supplying it to heat supplying enterprises and budget establishments.

Representatives of Ukrainian authorities previously expressed hope for the price for gas imported to Ukraine to cost $160 per 1,000 cu m in 2008 (this year it is $130 per 1,000 cu m).

On 27 November, the acting Economic Minister of Ukraine Anatoly Kinakh said that in case Turkmenistan sells gas to Gazprom at more than $100 per 1,000 cu m, problems will occur for Ukraine.

Gazizulin forecasts no other changes in gas issues. Prices will keep rising for Ukraine to the level at which the prices in Eastern Europe are, but it will take place gradually, he stressed.

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