OREANDA-NEWS. OREANDA-NEWS. Today in Bishkek, in the presence of Kyrgyz President Almazbek Atambayev, the Gazprom Management Committee Chairman Alexey Miller and the Kyrgyzgaz Director General Turgunbek Kulmurzaev signed a Sales and Purchase Agreement for a 100 per cent stake in KyrgyzgazProm.

The company is the sole importer of natural gas to Kyrgyzstan and owner of the country's gas transmission and distribution systems. Once the transaction is closed, KyrgyzgazProm will be renamed Gazprom Kyrgyzstan.

 “The acquisition of KyrgyzgazProm is a natural follow-up of our long-standing relations with Kyrgyz partners. Gazprom receives a direct access to Kyrgyzstan's market, and the country has guarantees of reliable gas supplies as well as a sound investment in an extensive retrofit and upgrade of gas transmission and production capacities. Gazprom becomes a strategic investor in the Kyrgyz economy,” said Alexey Miller.
Background

In July 2013 the Russian Federation and the Kyrgyz Republic Governments inked the Cooperation Agreement concerning natural gas purchase, transmission and distribution across Kyrgyzstan. The document was the legal basis for signing the Sales and Purchase Agreement for a 100 per cent stake in KyrgyzgazProm.
KyrgyzgazProm, a wholly-owned subsidiary of Kyrgyzgaz, is focused on natural gas purchase, transmission and distribution across Kyrgyzstan. The KyrgyzgazProm assets include over 700 kilometers of gas trunklines, about 2,300 kilometers of gas distribution pipelines as well as 266 gas distribution points.
In 2003 Gazprom and the Kyrgyz Republic Government entered into the long-term Cooperation Agreement in the gas industry for a period of 25 years.
In 2007 Gazprom and the Kyrgyz Republic Government signed the Agreement on the common principles for the geological survey of subsurface resources. Under the document, Gazprom obtained two subsurface use licenses for the Kugart and Eastern Mailu-Suu IV blocks.
Kyrgyzstan's proven natural gas reserves are estimated at 6 billion cubic meters. The domestic gas production averages 20 million cubic meters per annum. Gas consumption makes up some 300 million cubic meters per annum, 90 per cent of which is imported from Uzbekistan and Kazakhstan.