BELARUS NEWS AND ANALYSIS

DATE:

30/12/2006

Ministry: Belarus preparing for gas switching off by Gazprom

MOSCOW, Dec. 30 (Xinhua) -- Belarus is reorganizing its energy supply system in getting ready for a possible decision by Russian gas giant Gazprom to halt gas exports to Belarus from Monday, the Belarussian Energy Ministry said on Saturday.

"We still hope for a positive outcome of the gas negotiations, but the Belarussian energy system has already started technical preparations for the gas supply being switched off," a ministry spokesman was quoted by the Interfax news agency as saying.

He said one of the preparatory measures was to substitute fuel oil for gas as fuel for thermal power plants.

Earlier on Saturday, Gazprom ruled out the possibility of gas exports to Belarus in 2007 before a contract is signed and announced it was launching inspections to stop Belarus siphoning off gas from a transit pipeline.

Belarus is buying gas from Russia at 46.7 dollars per 1,000 cubic meters. The current contract expires on Dec. 31.

Gazprom is demanding Belarus pay 105 dollars per 1,000 cubic meters next year, with 75 dollars in cash and 30 dollars in shares in the country's gas transport company Beltransgaz.

No progress has been made in the gas talks between the two sides yet.

Source:

http://news.xinhuanet.com/english/2006-12/31/content_5551270.htm