ASHGABAT, Turkmenistan, October 25. Russian Gazprom and Turkmenistan's Turkmengaz State Concern have concluded their five-year contract for the supply of Turkmen gas, said Turkmengaz chairman Maksat Babayev on the sidelines of the 29th “Oil & Gas of Turkmenistan - 2024” International Conference & EXPO in Ashgabat, Trend reports via Russian media.
According to the chairman, despite negotiations to extend the agreement, the parties were unable to reach a consensus on pricing.
Babayev explained that the contract allowed for a price revision by June 30, with the possibility of an extension if an agreement was reached. However, talks over the commercial terms did not result in a mutual understanding, leading to the contract's termination.
“We evaluate contracts based on mutual benefit, and currently, there is increasing demand for Turkmen gas from various regions, including the north, west, and east. We are continuously negotiating with different buyers and countries, so resuming supplies to Russia remains a possibility,” Babayev stated.
The contract, initially signed in 2019, facilitated the delivery of up to 5.5 billion cubic meters of natural gas annually to Gazprom.
In 2023, Turkmengaz had planned to deliver five billion cubic meters of gas to Gazprom. Russian Ambassador to Ashgabat, Ivan Volynkin, confirmed that Turkmenistan fully met its gas supply obligations for the year. In previous years, Turkmenistan supplied 5 billion cubic meters of gas in 2022 and 10 billion cubic meters in 2021 under the same agreement.