Turkmen, Ukrainian firms to construct gas pipeline under Amu-Darya River

Aug 14, 1999 02:00 AM

Turkmen President Saparmurad Niyazov has issued a resolution stating that work on a new gas pipeline under the Amu-Darya River would begin by the end of the year.
The pipeline will bring domestically produced gas from the Malai field to settlements in the Lebap province, on the right bank of the Amu-Darya.
These settlements currently depend on fuel from Uzbekistan, which delivers 120 million cubic meters of natural gas per year via the Mubarek-Kelif line. A number of foreign companies -- including Exxon of the United States and Lurgi of Germany -- have signed deals to look for oil and gas on the right bank of the Amu-Darya in recent years. However, it may be years before any of these investors are in a position to begin producing.
The resolution issued by Niyazov states that Turkmenistan's state oil and gas concern Turkmenneftegaz will build the pipeline with help from a Ukrainian firm, Ukrhazstroi. Turkmenneftegaz will lay the overland sections of the pipe along a 25-km route from the Malai field to Kerki, a settlement on the Amu-Darya, by way of Sakar. Ukrhazstroi, meanwhile, will lay a two-branched pipeline along a 5-km route beneath the river under a contract worth $ 15 million.
Turkmen media sources noted that the Ukrainian firm would be paid for its work in kind rather than in cash. The Turkmen president's resolution states that Ukrhazstroi will receive 416.7 million cubic meters of gas in 1999 and 2000. Ukrhazstroi has worked under barter contracts in Turkmenistan in the past. According to the Turkmen sources, the firm was given gas as payment for its work at the Kotur-Tepe and Kaakha compressor stations and construction of the Kazanjik-Gysylarvat gas pipeline.

Source: NewsBase
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