Baku, Ankara still divided on gas price
Azerbaijan and Turkey did not succeed in reaching an
agreement on the price of Azeri gas during another round of talks
held in Baku on Tuesday though some issues were hammered out, says
Rovnag Abdullayev, the president of Azerbaijan’s state energy firm
SOCAR.
Abdullayev said the discussions centered on the price and volume of fuel exported to the neighboring country, transit of the South Caucasus republic’s gas supplied to Europe through Turkey, and transit costs.
The SOCAR president said Baku and Ankara intend to iron out their differences by the end of 2009.
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 negotiations have been complicated. Turkey is seeking a price that is below world-market levels, and Baku has not ruled out concessions to the neighboring country. In return, Azerbaijan is seeking a moderate transit fee.
Abdullayev said earlier 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.*
Abdullayev said the discussions centered on the price and volume of fuel exported to the neighboring country, transit of the South Caucasus republic’s gas supplied to Europe through Turkey, and transit costs.
The SOCAR president said Baku and Ankara intend to iron out their differences by the end of 2009.
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 negotiations have been complicated. Turkey is seeking a price that is below world-market levels, and Baku has not ruled out concessions to the neighboring country. In return, Azerbaijan is seeking a moderate transit fee.
Abdullayev said earlier 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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