Azernews.Az

Turkey has agreed the price of gas imported from Azerbaijan and talks between the two countries on gas supplies are close to completion, Ambassador Hulusi Kilic told reporters on Thursday.
Kilic did not specify the price but said Ankara will also repay the outstanding amount owed for the difference between the previous and new prices. He added that the issues that remain to be agreed are unrelated to the price of delivered fuel.
From 2006 till April 15, 2008, Turkey was buying Azerbaijani gas for $120 per 1,000 cubic meters. According to the gas supply contract concluded by Ankara and the partners in the project on tapping Azerbaijan’s largest gas field, Shahdaniz, the price is to be reconsidered from that date. Turkey is expected to import up to 6.6 billion cubic meters of the South Caucasus republic’s gas during Phase 1 of Shahdaniz development.
Further, during Phase 2, Azerbaijan is looking to deliver its gas to Europe through Turkey for prices complying with world market levels. However, Ankara has offered to buy Azerbaijani gas and sell it to European consumers on its own. This has led to the emergence of a long-standing dispute and analysts predict could even jeopardize the future of the Nabucco pipeline, an ambitious Western-backed project that seeks to transport gas from the Caspian and Central Asia regions to European markets.
As agreed beforehand by Baku and Ankara, both issues are to be considered as a whole.*