Gazprom to tune Beltransgaz performance

MINSK, 8 December (BelTA) – OAO Gazprom plans to considerably improve performance of OAO Beltransgaz. The relevant statement was made at the session held by OAO Gazprom Chairman of the Board Aleksei Miller on 8 December to discuss Beltransgaz’ integration into Gazprom Group, BelTA learned from the OAO Gazprom information office.

It was stated that bringing Beltransgaz up to Gazprom’s corporate standards and requirements was important. There are plans to arrange a technical audit of the company’s main assets. Results will be used to work out proposals to improve performance of gas transportation installations and underground gas storage facilities, proposals to harmonize maintenance, major overhaul and reconstruction programs with relevant Gazprom programs. Bringing Beltransgaz up to Gazprom technical standards was also mentioned.

Participants of the session also discussed prospects of Beltransgaz sale activities taking into account the arrangements reached by Belarus and Russia in November 2011 regarding gas pricing terms and gas price markups.

Conditions of Russian gas deliveries to Belarus and gas transportation across the country till 31 December 2011 inclusive are specified by the Gazprom-Beltransgaz contract for 2007-2011. In line with the document the gas price Belarus has to pay is determined by a formula that corresponds to the formula used to price Russian gas deliveries to Europe. In 2008-2010 the gas price Belarus paid was affected by decreasing coefficients (0.67, 0.7, and 0.9 respectively).

On 25 November 2011 the Belarusian and Russian governments signed an agreement on pricing natural gas deliveries to Belarus and natural gas transportation via the gas pipelines located in Belarus. The sides also signed an agreement on terms of selling Beltransgaz shares and the future operation of the company. In elaboration of the documents on 25 November 2011 Gazprom and Beltransgaz signed contracts on gas deliveries to Belarus and its transportation across the country in 2012-2014. In addition OAO Gazprom and the State Property Committee of Belarus signed the contract to sell 50% of Beltransgaz shares to Gazprom. Since Gazprom bought 50% of Beltransgaz shares in 2007-2010, now the Russian company owns 100% of Beltransgaz shares.