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Energy Watch, December 6

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MOSCOW, December 6 (RIA Novosti)

Below is a summary of the main energy-related events in Russia, the CIS and neighboring countries on December 6, 2005

* Russian Finance Minister Alexei Kudrin said the ministry was planning to include a higher base oil price in budgetary plans for the next three years without altering agreed to budgetary parameters

* The head of Norwegian oil and gas company Hydro confirmed the company was ready to participate in the North European Gas Pipeline project

* LUKoil subsidiary LUKoil Overseas announced the completion of all preliminary terms of a deal to buy Canadian oil company Nelson Resources Ltd., operating in Kazakhstan

* The Belarusian president's envoy to Russia said a contract on the supplies of Russia's natural gas to Belarus at a price of $46.68 per 1,000 cu m would be signed by December 19

* Oil transit from Russia to China via the East Siberian Railroad in the first 11 months of 2005 was up 35.8% year-on-year, exceeding 7 million metric tons

* Russian energy giant Gazprom is planning to spend $2.2 billion on the company's underground natural gas storage system in Russia from 2005-2010

* The government of Tatarstan, a Russian republic in the Volga Region, is planning to hold a tender for the construction of oil refineries and petrochemical plants in Nizhnekamsk in January 2006

* Russian President Vladimir Putin said Russia was prepared to increase supplies of oil and natural gas to India and consider building pipelines and was willing to cooperate with India on nuclear power projects

* Moscow's energy supplier Mosenergo said industrial consumers in Moscow would face energy restrictions when the temperature fell below -20 degrees Celsius

* A $2 billion-plus oil refinery with the annual capacity of 12-18 million metric tons will be built in the Kaliningrad Region, the governor of the Baltic exclave said

* The volume of exported coal to Europe that is transferred via the Leningrad Region's seaport of Vysotsk increased 13% in January-November this year to hit 3.2 million tons

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