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. Last Updated: 07/27/2016

VTB Sees Turkmen Gas Sales

Gazprom is likely to resume gas purchases from Turkmenistan, which were halted in April after a pipeline blast, this month or next month, VTB Capital said after a meeting with Gazprom’s management.

Supplies from Turkmenistan were suspended in April after an explosion at the pipeline that connects Russia and the country. The link has been repaired, but supplies were never restored as Moscow sought better terms for the purchases.

“Gazprom expects to resume purchases of Turkmen gas in October-November this year but does not have a clear view on 2010 volumes,” VTB Capital analysts wrote in their note after the meeting.

Before the pipeline blast, Gazprom used to import about 50 billion cubic meters of Turkmen gas a year, but because of the economic downturn and subsequent drop in demand it is unlikely to return to this level of volume.

A market source told Reuters that Gazprom will likely buy up to 30 billion cubic meters of Turkmen gas next year.

Gazprom declined to comment on the report.