BELARUS NEWS AND ANALYSIS

DATE:

02/04/2008

Gazprom, Belarus begin working on new power plant

Russian gas giant Gazprom and Belarus began working on a new power plant, Itar-Tass reports.

Belarusian First Deputy Prime Minister Vladimir Semashko and Gazprom CEO Alexei Miller have set up a working group to monitor a project for construction of a power plant on the territory of Belarus.

Gazprom's information department said that the two men, who met in Moscow, also discussed cooperation between the two sides in the gas industry.

"The sides stated that Belarus gets natural gas at a price formula tied to the cost of gas in Europe," Gazprom said in a news release. "Parties to the talks also considered current issues pertaining to the operations of the company Beltransgaz."

Special attention was paid to the monies that Beltransgaz pays to the Belarusian Fund for Innovations.

Gazprom told its Belarusian partners that such payments run counter to the terms of purchase of the 50-percent state in Beltransgaz.

Gazprom and Beltransgaz signed an agreement on Dec. 31, 2006, on supplies and transit of gas from 2007 to 2011.

The document set the price of gas supplied to Belarus at $100 per 1,000 cubic meters that was effective for 2007, and the formula for price formation as of Jan. 1 corresponding to the formula of Russian gas supplies to European countries, as well as the appropriate price reduction rates for 2008 to 2010.

As of 2011, Belarus shall pay the prices equal to those for European customers.

Source:

http://www.upi.com/International_Security/Energy/Analysis/2008/04/02/upi_energy_watch/2165/

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