Price for gas sold to Turkey to rise, SOCAR boss says
Azerbaijan intends to raise the price of gas it
sells to Turkey, and talks about a price rise are underway with
Ankara, according to Rovnag Abdullayev, the president of the state
oil company SOCAR.
Abdullayev told the ANS TV channel that discussions were held with representatives of Turkey`s energy ministry and executives of the Turkish Botas company on the margins of a conference recently held in Ashgabat. The SOCAR chief did not specify how much a new tariff would add to the price of gas sold to Turkey.
Currently Azerbaijan sells gas to Turkey for $120 per 1,000 cubic meters.
Abdullayev noted that the production sharing agreement on the major Shahdaniz field in the Azerbaijan sector of the Caspian Sea was signed in 2001, but the document has become outdated.
"At that time we were buying gas from Russia for $30, and also had a contract with Turkey on supplying gas for $120 per 1,000 cu. m. Now, this agreement is considered outdated. The contract on gas deliveries at that price was earmarked for one year. Upon its expiration, talks on setting a new price should have been launched. Quite a lot of time has passed since 2001 and no one could have predicted then that prices would surge like this. We have met our obligations and decided to initiate the process of raising tariffs."
Abdullayev told the ANS TV channel that discussions were held with representatives of Turkey`s energy ministry and executives of the Turkish Botas company on the margins of a conference recently held in Ashgabat. The SOCAR chief did not specify how much a new tariff would add to the price of gas sold to Turkey.
Currently Azerbaijan sells gas to Turkey for $120 per 1,000 cubic meters.
Abdullayev noted that the production sharing agreement on the major Shahdaniz field in the Azerbaijan sector of the Caspian Sea was signed in 2001, but the document has become outdated.
"At that time we were buying gas from Russia for $30, and also had a contract with Turkey on supplying gas for $120 per 1,000 cu. m. Now, this agreement is considered outdated. The contract on gas deliveries at that price was earmarked for one year. Upon its expiration, talks on setting a new price should have been launched. Quite a lot of time has passed since 2001 and no one could have predicted then that prices would surge like this. We have met our obligations and decided to initiate the process of raising tariffs."
Here we are to serve you with news right now. It does not cost much, but worth your attention.
Choose to support open, independent, quality journalism and subscribe on a monthly basis.
By subscribing to our online newspaper, you can have full digital access to all news, analysis, and much more.
Subscribe
You can also follow AzerNEWS on Twitter @AzerNewsAz or Facebook @AzerNewsNewspaper
Thank you!