Republic

Belarus government sets up working party to create gas transportation joint venture

The Belarusian government has set up a working party to create the Belarusian-Russian gas transportation joint venture. The decision is laid down by the prime minister’s resolution No. 327 dated by March 15, 2007, BelTA learnt from representatives of the Council of Ministers Office. The document authorises the working party to conduct negotiations with the Russian side about the creation of the gas transportation joint venture, including negotiations on the agreement meant to regulate the purchase of Beltransgaz shares and to amend the company’s founding charter. The agreement is to be signed by the State Property Committee of Belarus and Russian OAO Gazprom. After Belarus and Russia have approved the plan of actions required to found the Belarusian-Russian gas transportation venture, the working party will also have to ensure the timely execution of the plan of actions. Representatives of the Belarusian energy ministry told BelTA, negotiations with OAO Gazprom management were held in Moscow on March 19 to discuss the creation of the gas transportation joint venture. The Belarusian delegation included energy minister Alexander Ozerets, representatives of the justice ministry, the State Property Committee, and Beltransgaz company. Let us remind you, on December 31, 2006, Belarus and Russia signed a protocol for setting up a joint gas transportation venture on the basis of Beltransgaz. According to the document, Gazprom will buy 50% of Beltransgaz shares for $2.5 billion. The Belarusian-Russian gas transportation joint venture is to be set up by June 1, 2007. Gazprom is expected to buy the 50% of Beltransgaz shares in equal parts within four years. Beltransgaz performs natural gas distribution to domestic customers and gas transportation across Belarus. The state owns 100% of Beltransgaz shares. The company operates around 7,000 km of gas pipelines, which diameter varies between 100 mm and 1400 mm, and services the Belarusian section of the Gazprom-owned transcontinental pipeline Yamal-Europe. In 2006 Belarus imported 20.8 billion cubic metres of gas and transported over 44 billion cubic metres of gas in transit.