Russia's OAO Gazprom (GAZP.RS) said Friday it has signed an agreement with Turkmenistan, which includes increasing the country's gas pipeline network and a new pricing formula for the import of Turkmen gas.
Under the agreement, Gazprom will increase the capacity of the Pre-Caspian gas pipeline to 30 billion cubic meters a year.
The Pre-Caspian pipeline, which was agreed upon in December last year, is designed to provide natural gas from Kazakhstan and Turkmenistan with a route through Russia to European markets.
Originally the pipeline was supposed to carry 20 billion cubic meters a year.
Gazprom has also signed an agreement with Turkmenistan on pricing principles for Turkmen gas, the company said without giving further details.
Gazprom is forced to pay higher prices for the natural gas it imports from Turkmenistan, Kazakhstan and Uzbekistan, amid growing competition with the West and China for access to the ex-Soviet countries' gas.
Earlier this month, the company said it could spend $20 billion to buy Central Asian gas in 2008, instead of $8 billion this year.