SOCAR, Gazprom clinch deal on Azeri gas exports
Azerbaijan’s state energy firm SOCAR and Russian gas
monopoly Gazprom signed an agreement on the sales of Azerbaijani
gas to the neighboring country in Baku on Wednesday. The document
was signed by SOCAR President Rovnag Abdullayev and Gazprom’s Chief
Executive Alexei Miller.
Miller said the agreement will play a great role in strengthening energy cooperation between the two countries. The mid-term agreement will also promote the expansion of relations between the two companies.
Elaborating on the details of the deal, Abdullayev said it will allow exporting gas produced in the South Caucasus republic to a new market – Russia. Azerbaijan will tackle gas exports in January 2010. At least 500 million cubic meters of gas will be exported to the northern neighbor next year.
"This will allow expanding SOCAR’s gas program," Abdullayev said. "As gas production increases, Gazprom will be notified beforehand, in accord with the terms of the agreement, and we will have the opportunity to sell additional gas to Russia.
Abdullayev did not spell out the price for gas and only said it was formed based on a formula, satisfying SOCAR.
"This is a good price and we accept it. The volumes [of exported gas] will have no impact on the price," he added.*
Miller said the agreement will play a great role in strengthening energy cooperation between the two countries. The mid-term agreement will also promote the expansion of relations between the two companies.
Elaborating on the details of the deal, Abdullayev said it will allow exporting gas produced in the South Caucasus republic to a new market – Russia. Azerbaijan will tackle gas exports in January 2010. At least 500 million cubic meters of gas will be exported to the northern neighbor next year.
"This will allow expanding SOCAR’s gas program," Abdullayev said. "As gas production increases, Gazprom will be notified beforehand, in accord with the terms of the agreement, and we will have the opportunity to sell additional gas to Russia.
Abdullayev did not spell out the price for gas and only said it was formed based on a formula, satisfying SOCAR.
"This is a good price and we accept it. The volumes [of exported gas] will have no impact on the price," he added.*
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