Kyrgyzstan To Privatize Gas Utility, Asks Russia's Gazprom To Participate

Bishkek, Kyrgyzstan (AHN) - Kyrgyzstan Prime Minister Igor Chudinov has offered Russia's Gazprom an opportunity to take part in the privatization of national gas utility Kyrgyzgaz.

Chudinov said Monday "this issue is currently being scrutinized by the two sides," after discussions with Gazprom CEO Alexei Miller in Moscow on January 24.

However, the planned privatization still has to be approved by the government, reported Itar-Tass News Agency. Industry Minister Saparbek Balkibekov told journalists that "it will be possible to hold substantive talks with Gazprom only after all the Kyrgyz side has completed all the necessary procedures."

Balkibekov said Gazprom is public about its interest in buying assets of Kyrgyzgaz and has requested Bishkek to inform Moscow of the privatization schedule.

According to the Eurasia Daily Monitor Kyrgyzstan's prospected gas fields has an estimated six billion cubic meters of natural gas, but their development is difficult due to Kyrgyzstan's hostile landscape and poor infrastructure.

Gazprom announced on January 22 that it was investing $300 million in a joint venture with the Kyrgyz government to install wells and pipelines in Kyrgyzstan, according to Economic Development and Trade Minsiter Akylbek Zhaparov.

The government will invest $200 million in the search for new gas deposits. Kyrgyzstan intends to raise annual gas production from its current level of 30 million cubic meters to 40 million cubic meters in two years.

Gazprom faces competition in Kyrgyzstan. In November 27, the Kyrgyz State Property Committee announced that China's International Oil Prospecting Company won an investment tender to buy a 100 percent stake in Kyrgyzstan's Batken Neftegaz for $1.1 million.