What Happened: Russia's Gazprom has reached an agreement with Turkmenistan to buy 5.5 billion cubic meters (bcm) of natural gas per year for the next five years, although no details were provided on the price of the deal, RFE/RL reported July 3.
Why It Matters: The purchasing agreement represents a significant expansion of Russia's gas imports from Turkmenistan and could give the latter a much-needed financial reprieve after it has been facing significant fiscal strain in recent years due to low energy prices and lack of demand.
Background: Turkmenistan is currently exporting 30 bcm - 40 bcm of natural gas per year to China, while exports to Russia had fallen from 40 bcm in 2009 to 4 bcm in 2015.
Read More:
- Turkmenistan: Russia Plans to Resume Its Imports of Turkmen Natural Gas (Oct. 10, 2018)
- What Does the New Caspian Sea Agreement Mean For the Energy Market? (Aug. 17, 2018)
- Has Central Asia Stabilized? (Nov. 27, 2017)
