Ankara makes new offers on gas imports
Turkey has made new proposals on importing natural
gas from Azerbaijan, Turkish Minister of Energy and Natural
Resources Taner Yildiz has told state-run Anatolian news
agency.
Yildiz did not spell out the gist of the proposals, but said the ``climate of discussions`` ongoing between Ankara and Baku was ``better than before.``
He noted that the situation in the region is swiftly changing, and the Turkish government is awaiting a response to the proposals.
``There is a proverb of our forefathers saying `strike the iron while it is hot`, and it is now the right time for that,`` Yildiz said. ``If this issue drags on, certain challenges could emerge for both sides.``
Under the production sharing agreement on tapping Azerbaijan`s major Shahdaniz field in the Caspian Sea signed in 2001, Turkey was buying Azerbaijani gas for $120 per 1,000 cubic meters. However, the contract on gas deliveries, which is renewed every year, expired in April 2008, and the project consortium decided to launch discussions on a new price.
Turkey has paid higher prices for gas to other exporters, including Russia and Algeria. Baku says the new price is to comply with market levels. When gas was being purchased from Azerbaijan for $120 last year, prices in world markets were at the level of $400-500.
Shahdaniz began production in 2006. The field holds estimated reserves of 2 trillion cubic meters of gas, according to official figures.
Yildiz did not spell out the gist of the proposals, but said the ``climate of discussions`` ongoing between Ankara and Baku was ``better than before.``
He noted that the situation in the region is swiftly changing, and the Turkish government is awaiting a response to the proposals.
``There is a proverb of our forefathers saying `strike the iron while it is hot`, and it is now the right time for that,`` Yildiz said. ``If this issue drags on, certain challenges could emerge for both sides.``
Under the production sharing agreement on tapping Azerbaijan`s major Shahdaniz field in the Caspian Sea signed in 2001, Turkey was buying Azerbaijani gas for $120 per 1,000 cubic meters. However, the contract on gas deliveries, which is renewed every year, expired in April 2008, and the project consortium decided to launch discussions on a new price.
Turkey has paid higher prices for gas to other exporters, including Russia and Algeria. Baku says the new price is to comply with market levels. When gas was being purchased from Azerbaijan for $120 last year, prices in world markets were at the level of $400-500.
Shahdaniz began production in 2006. The field holds estimated reserves of 2 trillion cubic meters of gas, according to official figures.
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