Gas transit through Belarus to fall 2% per year in 2013-2014
MINSK. June 13. (Interfax) - Russian gas transit through Belarus will fall by roughly 2% a year in 2013-2014 and come to 42.4 billion cubic meters (bcm) in 2014, Russian gas major OJSC Gazprom reported in its annual financial statement, which has been made available to Interfax.
Under the contract for natural gas transport through Belarus in 2012-2014, signed by Gazprom and OJSC Beltransgaz, 16.08 bcm of gas will be sent through Beltransgaz's pipeline system in 2012, 16.09 bcm will be sent in 2013, and 16.2 bcm in 2014.
Through the Yamal-Europe pipeline, 28.3 bcm of gas will flow in 2012, 27.2 bcm in 2013, and 26.2 bcm in 2014.
Therefore, cumulative gas transit volumes will come to 44.38 bcm in 2012, 43.29 bcm in 2013 (2.5% less than the year before), and 42.4 bcm in 2014 (2.1% less than in 2013).
The cost of natural gas transport services through Belarus is estimated at about $467.3 million this year, including VAT.
According to the Gazprom-Beltransgaz contract, Belarus will be supplied with 22.5 bcm of gas in 2012 and 23 bcm of gas in 2013 and 2014 each. Russian gas deliveries to Belarus will therefore grow by 2.2% over 2012 in 2014.
The contract also stipulates that Belarus will pay $165.6 per 1,000 cubic meters of gas to meet its domestic needs in 2012, totaling about $3.726 million for the year as a whole, including VAT.
Contracts for gas transit through Belarus and gas for the domestic market apply to the relations of the parties arising on January 1, 2012, and are valid until the end of this year, given that both sides fulfill several conditions, Gazprom said.
These conditions include: the execution of an intergovernmental agreement on the terms of the purchase-sell of Beltransgaz's stock and its future activities; the fulfillment of an intergovernmental agreement on the procedure for price formation (tariffs) for natural gas supplies to Belarus, as well as for its transport through pipelines located in Belarus; and the completion of the procedure of transferring 50% of Beltransgaz's stock to Gazprom, to be performed by the State Property Committee of Belarus.
Meanwhile, according to materials prepared ahead of Gazprom's June 29 annual shareholders meeting, gas transit through Belarus could total up to 60 bcm in 2013. This number has been cited in the drafts of several contracts, which are slated for approval at the annual meeting.
According to these documents, Beltransgaz will be providing gas transit services next year for not more than 60 bcm, while Gazprom will pay up to $570 million for use of the company's trunk pipeline system. Also, Gazprom will sell, and Beltransgaz will acquire, gas in the amount of not more than 23 bcm for no more than $4.1 billion.
Gazprom and Beltransgaz representatives previously said that the amount of gas transit in Belarus this year is expected to increase by 4 bcm over last year to around 48 bcm. The country's domestic market will get 21.5 bcm in 2012, versus 20 bcm in 2011.
In December 2006, Gazprom and Beltransgaz signed a contract for the supply and transit of gas in the period 2007-2011. Last November, the parties inked a package of documents concerning terms for the supply and transit of gas in 2012-2014, and wrapped up the sale to Gazprom of 50% of the stock in Beltransgaz for $2.5 billion.
The trunk Yamal-Europe gas pipeline, owned by Gazprom, annually pumps roughly 33 bcm of Russian gas through Belarus. The Beltransgaz pipeline system, also owned by Gazprom, transports 15-16 bcm of gas yearly.
According to Belarusian National Statistics Committee (Belstat) figures, 64.3 bcm of natural gas were transported through and supplied to Belarus last year, 0.7% less than in 2010.
