Medvedev says gas deal with Azerbaijan may be signed soon
Russia may sign an agreement to buy gas from
Azerbaijan soon, Russian President Dmitry Medvedev said after
meeting with his counterpart Ilham Aliyev in Moscow on Friday.
Medvedev told a joint news conference following the talks that tremendous progress has been achieved in finalizing an agreement with the resource-rich South Caucasus republic on gas imports.
"The companies [Russian giant Gazprom and Azerbaijan`s state oil company SOCAR] have been holding direct talks for some time. In my opinion, we stand a very good chance of reaching a full agreement - certainly, within the interests of both countries and the commercial interests of both parties` companies," Medvedev said.
The Azerbaijani leader said supplying gas to Russia requires fewer additional investments compared to other alternatives. He noted that there is no transit country for the deliveries and that the pipelines available are ready for transporting gas.
"On our end there are, and can`t be any, restrictions on cooperation in the area of gas supplies. For Azerbaijan, this is an element of diversifying its gas export routes," Aliyev said. Cooperation with Gazprom will grant Azerbaijan access to new energy sales markets, Aliyev noted.
Moreover, Azerbaijan anticipates increasing the volume of its oil pumped through the Baku-Novorossiysk northern route pipeline, Aliyev said. "The Baku-Novorossiysk pipeline has been in operation for many years, and we are looking to increase the volume of our crude pumped through it in the future."
Baku and Moscow earlier reached a preliminary agreement on delivering Azerbaijani gas to Russia beginning in 2010. Gas produced from the major Shahdaniz field in the Azerbaijan area of the Caspian Sea will be transported to Russia through a 200 km pipeline extending from the Baku coast of the basin to the Russian town of Novo-Filya. The precise volume of supplies and the price to be charged have not yet been specified, but analysts suggest that Gazprom is expected to pay $340 per 1,000 cubic meters of Azerbaijani gas.
Vladimir Dorokhin, the newly-appointed Russian Ambassador in Baku, has said an agreement on Russia`s purchasing Azerbaijan`s gas may be signed in May.
He told a press conference that this document would be strictly a business contract.
"This agreement will not lay any political commitments on Azerbaijan and will not be aimed against any third states," the diplomat said, referring to the European Union-backed project on building the Nabucco pipeline, which seeks to deliver Azerbaijani and Central Asian gas to European markets while bypassing Russia.
Dorokhin added that Gazprom`s Chief Executive, Alexei Miller, expressed interest in buying Azerbaijani gas for market prices during a visit to Baku in May 2008. Having considered the proposal, Azerbaijan signed a memorandum of understanding with the company in late March 2009. The signatories agreed to hold talks on the volume and conditions of gas trade. Both sides are currently exchanging information.
"We hope that the sides will determine concrete details of cooperation soon, maybe as early as in May," Dorokhin added.
Analysts say Azerbaijan`s exporting gas to its northern neighbor could adversely affect the implementation of the Nabucco project. By building this pipeline, the EU is trying to reduce its dependence on Russian gas.
Azerbaijan currently produces over 56 million cubic meters of gas per day, of which 18m cu. m. is exported to Turkey, while 3m cu. m. is sent to Georgia.
Shahdaniz launched production in 2006. The field holds estimated reserves of 2 trillion cubic meters of gas, according to official figures.
Medvedev told a joint news conference following the talks that tremendous progress has been achieved in finalizing an agreement with the resource-rich South Caucasus republic on gas imports.
"The companies [Russian giant Gazprom and Azerbaijan`s state oil company SOCAR] have been holding direct talks for some time. In my opinion, we stand a very good chance of reaching a full agreement - certainly, within the interests of both countries and the commercial interests of both parties` companies," Medvedev said.
The Azerbaijani leader said supplying gas to Russia requires fewer additional investments compared to other alternatives. He noted that there is no transit country for the deliveries and that the pipelines available are ready for transporting gas.
"On our end there are, and can`t be any, restrictions on cooperation in the area of gas supplies. For Azerbaijan, this is an element of diversifying its gas export routes," Aliyev said. Cooperation with Gazprom will grant Azerbaijan access to new energy sales markets, Aliyev noted.
Moreover, Azerbaijan anticipates increasing the volume of its oil pumped through the Baku-Novorossiysk northern route pipeline, Aliyev said. "The Baku-Novorossiysk pipeline has been in operation for many years, and we are looking to increase the volume of our crude pumped through it in the future."
Baku and Moscow earlier reached a preliminary agreement on delivering Azerbaijani gas to Russia beginning in 2010. Gas produced from the major Shahdaniz field in the Azerbaijan area of the Caspian Sea will be transported to Russia through a 200 km pipeline extending from the Baku coast of the basin to the Russian town of Novo-Filya. The precise volume of supplies and the price to be charged have not yet been specified, but analysts suggest that Gazprom is expected to pay $340 per 1,000 cubic meters of Azerbaijani gas.
Vladimir Dorokhin, the newly-appointed Russian Ambassador in Baku, has said an agreement on Russia`s purchasing Azerbaijan`s gas may be signed in May.
He told a press conference that this document would be strictly a business contract.
"This agreement will not lay any political commitments on Azerbaijan and will not be aimed against any third states," the diplomat said, referring to the European Union-backed project on building the Nabucco pipeline, which seeks to deliver Azerbaijani and Central Asian gas to European markets while bypassing Russia.
Dorokhin added that Gazprom`s Chief Executive, Alexei Miller, expressed interest in buying Azerbaijani gas for market prices during a visit to Baku in May 2008. Having considered the proposal, Azerbaijan signed a memorandum of understanding with the company in late March 2009. The signatories agreed to hold talks on the volume and conditions of gas trade. Both sides are currently exchanging information.
"We hope that the sides will determine concrete details of cooperation soon, maybe as early as in May," Dorokhin added.
Analysts say Azerbaijan`s exporting gas to its northern neighbor could adversely affect the implementation of the Nabucco project. By building this pipeline, the EU is trying to reduce its dependence on Russian gas.
Azerbaijan currently produces over 56 million cubic meters of gas per day, of which 18m cu. m. is exported to Turkey, while 3m cu. m. is sent to Georgia.
Shahdaniz launched production in 2006. The field holds estimated reserves of 2 trillion cubic meters of gas, according to official figures.
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