Price of Azeri gas supplied to Turkey set, report claims
Baku and Ankara are expected to strike final agreement in February
on the price of Azerbaijani gas exported to Turkey, which will
reach $399 per 1,000 cubic meters, Turkey’s Zaman daily has claimed
in a report dismissed by the country’s officials.
Turkish Botas company will reportedly pay $399 for the gas supplied in the initial months of 2009 to compensate for the difference in price that occurred during the period when it was paying $120. The price will range between $230 and $280 for mid-2009 and the end of last year.
The Zaman newspaper quoted Turkish Minister of Energy and Natural Resources Taner Yildiz as saying that paying off the difference to Azerbaijan requires additional expenses worth $600 million.
In 2007-2008, Botas preferred to buy inexpensive Azerbaijani gas instead of importing expensive Iranian gas, in an effort to save costs, Zaman said.
Turkey’s Energy Ministry countered that talks with Baku on the price of gas produced from Azerbaijan’s giant Shahdaniz field in the Caspian Sea have not yet been completed.
"The sides continue discussing this issue. There is no specific decision on reaching agreement in February," a ministry official told the Baku-based Trend news agency on Tuesday.
According to the gas supply contract concluded by Shahdaniz partners with Turkey, the price of Azerbaijani gas may be reconsidered a year after the start of gas deliveries, i.e. the new price is effective from April 15, 2008. Under the agreement, Turkey is to import up to 6.6 billion cubic meters of gas during Phase 1 of Shahdaniz development.*
Turkish Botas company will reportedly pay $399 for the gas supplied in the initial months of 2009 to compensate for the difference in price that occurred during the period when it was paying $120. The price will range between $230 and $280 for mid-2009 and the end of last year.
The Zaman newspaper quoted Turkish Minister of Energy and Natural Resources Taner Yildiz as saying that paying off the difference to Azerbaijan requires additional expenses worth $600 million.
In 2007-2008, Botas preferred to buy inexpensive Azerbaijani gas instead of importing expensive Iranian gas, in an effort to save costs, Zaman said.
Turkey’s Energy Ministry countered that talks with Baku on the price of gas produced from Azerbaijan’s giant Shahdaniz field in the Caspian Sea have not yet been completed.
"The sides continue discussing this issue. There is no specific decision on reaching agreement in February," a ministry official told the Baku-based Trend news agency on Tuesday.
According to the gas supply contract concluded by Shahdaniz partners with Turkey, the price of Azerbaijani gas may be reconsidered a year after the start of gas deliveries, i.e. the new price is effective from April 15, 2008. Under the agreement, Turkey is to import up to 6.6 billion cubic meters of gas during Phase 1 of Shahdaniz development.*
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