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News: October 2006

UZBEKISTAN TO ALMOST DOUBLE PRICE OF GAS FOR TAJIKISTAN IN 2007

Uzbekistan's Uztransgaz has notified Tajikistan's Tajikgaz of an increase in gas prices to $100 per 1,000 cubic meters from the current $55 starting on January 1, 2007, deputy head of Tajikgaz Shavkat Shoimov told Interfax on Tuesday.

"Uztransgaz informed us in writing that gas prices will be increase to $100. However, we still hope to negotiate a less drastic leap," he said.

Tajikistan signed an agreement with Uzbekistan on the delivery of 730 million cubic meters of gas in 2006, he said, adding that Tajikistan received 398.4 million cubic meters for $21.9 in January-August.

"The price increase will have a substantial impact on the Tajik aluminum plant and the Tajiktsement and Tajikazot plants "because these plants consume about 50% of gas imported by the country, Shoimov said.

Tajikistan produced 13.4 million cubic meters of gas in January-August 2006, a 38.5% decrease year-on-year. Domestic production is distributed exclusively for household needs in southern Tajikistan.

Source: KABAR, 10.10.2006