Turkmenistan has ceased gas supplies to Russia following the expiration of a five-year contract that was signed in 2019. Maksat Mamedsaparovich Babayev, the head of the Turkmen state concern Turkmengaz, announced this development during the International Conference and Exhibition "Oil and Gas of Turkmenistan - 2024," held this week in Ashgabat.
The contract, which allowed for the export of up to 5.5bn cubic meters of gas annually, expired on June 30, 2024. Babayev explained that the contract included provisions for price revisions, but negotiations with Gazprom failed to reach a mutual agreement on the commercial terms.
"Therefore, according to the terms of the contract, it was during this period that the price was to be revised, and if the parties do not agree, the contract should be terminated on June 30. Which, in principle, is what we did," he stated.
Despite halting exports to Russia, Babayev reassured that Turkmengaz has secured buyers for the lost volumes, indicating a rising demand from various regions, including the north, west, and east. He did not entirely rule out the possibility of a new contract with Gazprom, stating,
"Today, our demand from various sides is increasing. Therefore, we can say that every day we are at the stage of negotiations with various buyers and countries, so everything is possible."
In addition to addressing the contract with Russia, Babayev revealed ongoing discussions regarding the construction of a fourth line for the Turkmenistan-Uzbekistan-Kazakhstan-China transnational gas pipeline. He expressed hope for reaching an agreement on pricing soon.
Furthermore, the Turkmenistan-Afghanistan-Pakistan-India gas pipeline is also under construction, highlighting Turkmenistan's strategic focus on diversifying its export routes.
According to the Energy Institute's statistical reference book, Turkmenistan exported 4.7bn cubic meters of gas to Russia in both 2022 and 2023.
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