Baku-Ankara gas talks due Tuesday
Azerbaijan and Turkey will begin the next round of talks on the
price of Azeri gas in Baku on Tuesday, Rovnag Abdullayev, the
president of Azerbaijan’s state energy firm SOCAR, told the local
ANS TV channel.
Talks on the South Caucasus republic’s gas exports to European markets through Turkish territory have been complicated, and a solution of the issue now depends on whether or not Baku and Ankara are willing to make mutual concessions. Turkey is seeking a price that is below world-market levels. Baku treats this as natural and has not ruled out concessions to the neighboring country.
Under the gas supply agreement, the price of Azeri gas sold to Turkey is $120 per 1,000 cubic meters -- considerably lower than those in world markets. The provision on gas deliveries specifying the price expired in April 2008, and the two countries are now negotiating a new price.
The SOCAR president said a high price would certainly be more commercially lucrative for Azerbaijan, however, "the strategic issue -- the fact that we are brotherly nations – is being taken into account in our deliberations with Turkey."
It is unknown, at this point, what concessions Ankara will agree to make in return on the transit of Azeri gas, and this could be determined after the bilateral talks.
"These are negotiations on a big package of issues. We have included all outstanding issues in a single package. In the absence of an agreement on one of them, an agreement on the others is impossible, too," Abdullayev said.
He noted that Azeri gas will be exported to Europe in any case -- even if Baku will have to seek routes other than Turkey. Alternate options under consideration include transporting compressed gas to European countries from the Black Sea coasts.
Azerbaijan produces most of its gas from the giant Shahdaniz field in the Caspian Sea, which began production in 2006.*
Talks on the South Caucasus republic’s gas exports to European markets through Turkish territory have been complicated, and a solution of the issue now depends on whether or not Baku and Ankara are willing to make mutual concessions. Turkey is seeking a price that is below world-market levels. Baku treats this as natural and has not ruled out concessions to the neighboring country.
Under the gas supply agreement, the price of Azeri gas sold to Turkey is $120 per 1,000 cubic meters -- considerably lower than those in world markets. The provision on gas deliveries specifying the price expired in April 2008, and the two countries are now negotiating a new price.
The SOCAR president said a high price would certainly be more commercially lucrative for Azerbaijan, however, "the strategic issue -- the fact that we are brotherly nations – is being taken into account in our deliberations with Turkey."
It is unknown, at this point, what concessions Ankara will agree to make in return on the transit of Azeri gas, and this could be determined after the bilateral talks.
"These are negotiations on a big package of issues. We have included all outstanding issues in a single package. In the absence of an agreement on one of them, an agreement on the others is impossible, too," Abdullayev said.
He noted that Azeri gas will be exported to Europe in any case -- even if Baku will have to seek routes other than Turkey. Alternate options under consideration include transporting compressed gas to European countries from the Black Sea coasts.
Azerbaijan produces most of its gas from the giant Shahdaniz field in the Caspian Sea, which began production in 2006.*
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