Investment in Belarus’ gas pipeline system in excess of Br1tn in 2006-2010

Investment in the gas pipeline system of Belarus made up nearly Br1.1 trillion in 2006-2010.

Over the last five years Beltransgaz has pursued investment policies aimed at upgrading its facilities with a view of stabilizing their depreciation coefficient and securing stable and safe operation of the gas pipeline system. The company stressed that a decline in investment inflow in 2010 was attributed to the measures undertaken to optimize funding sources of long-term investment.

“In 2006-2010 Beltransgaz met almost all the major fiscal and social development parameters, secured higher export potential for the country, and increased budget payments,” the company said. The most significant achievements over the past five years were reaching of the estimated capacity at the Belarusian part of the Yamal-Europe gas pipeline, historic-high transportation of natural gas for Belarus’ needs and its transit via the country (2008), expansion of natural gas underground storage to 1 billion cubic meters.

Gas is transited towards Poland, Ukraine, the Republic of Lithuania, and Kaliningrad Oblast of Russia. 

According to Beltransgaz, balanced tariff policies and a partial restoration of the demand for natural gas in the EU countries in 2010 contributed to an increase in export services and trade surplus of $304 million (107.3% to 2009).

The period from 2006 to 2010 was a new stage of development for Beltransgaz. The company signed a long-term contract with Gazprom for gas supplies and transit in 2007-2011. In 2007 Beltransgaz and Gazprom inked a purchase/sale agreement on 50% of Beltransgaz shares. 

In 2006-2010 the Belarusian company was able to secure further development despite the global economic crisis that affected the consumption of natural gas in Europe. 

Over the last five years Beltransgaz’s turnover in monetary value has soared more than 3.5 times. Due to a considerably high annual turnover, the company has increased its tax payments to the budgets of all levels. 

Founded in 1960, Beltransgaz operates about 7,500 km of pipelines, 5 compressor plants, 3 underground gas storages, 233 gas distribution plants, 26 refueling compressor stations and 6 gas measuring stations. Beltransgaz supplies Russian natural gas to Belarusian customers and transits it to Kaliningrad Oblast of Russia, Lithuania, Ukraine, and Poland. The company also operates the Belarusian section of the Yamal-Europe pipeline. The government of Belarus and Gazprom own 50% of the Beltransgaz shares each.

According to