Turkmenistan, Russia discuss gas commercial price for 2009

ASHGABAT, June 18 (Itar-Tass) -- Terms for the delivery of
Turkmenistani natural gas to Russia in 2009 were in the focus of Tuesday's talks between representatives of the Russian gas monopoly Gazprom and Turkmenistani gas company Turkmengaz, the press service of the Turkmenistani government said.

Gazprom Deputy CEO Valery Golubev headed the Russian delegation.
"Apart from the detailed terms for gas supplies, the interlocutors
discussed capabilities for the joint work in the spheres of the geological
surveying and development of new oil and gas deposits in Turkmenistan and
construction of the Caspian Sea Littoral Gas Pipeline," the press service
said.

In 2008, Turkmenistan and Russia as the parties of the 25-year-long
intergovernmental gas agreement decided to review gas prices every six
months, the press service said.

Under the document, the gas price was raised by 30 percent to 130 U.S.
dollars per 1,000 cubic metres starting from January 1.

Starting from July 1, 2008 the prices will be increased to 150 U.S.
dollars.

In March 2008, Ashgabat notified its major gas exporter that starting
from 2009 Turkmenistan was going to set prices on the exported natural gas
in compliance with market principles, that is, with taking into account
the permanently changing economic situation on the global market of energy
resources.

Russia annually purchases up to 50 billion cubic metres of gas in
Turkmenistan.

Iran is the second largest exporter of Turkmenistani natural gas. Iran
buys up to eight billion cubic meters of gas annually. Ashgabat and Tehran
are also discussing the gas price issue.