Azerbaijan drafting deal on gas exports to Greece: SOCAR
Azerbaijan and Greece are drafting an agreement to
deliver the South Caucasus republic’s gas to the Greek market
through neighboring Turkey, the president of the Azerbaijani state
energy firm SOCAR, Rovnag Abdullayev, has said.
"We have held talks with Greece’s DEPA company. There is significant progress in this area," he said.
"Azerbaijan needs diversified export routes," the SOCAR president said, adding that Baku has also negotiated opportunities for gas export, its volumes and overall cooperation with Italy’s Edison.
Azerbaijan is already benefiting from its policy aimed at versatile gas delivery routes. The country is currently exporting gas to Turkey, Iran, Russia and Georgia. Abdullayev pointed out that expanding infrastructure for transporting gas to these markets will allow increasing the bulk of exports.
"Everything is up to us now. We have to expand our infrastructure for gas exports to Iran, Russia and Georgia," Abdullayev said.
SOCAR is considering new routes for exporting gas, including the trans-Adriatic, ITGI and Nabucco pipelines.
"At this point we are guided by the principles of commerce. We have to sell our gas in the market for a high price, which is the aspiration of any given producer," said Abdullayev.
According to him, Azerbaijan and Turkey continue holding talks on the exports of Azerbaijani gas. The parties are discussing signing a contract on the transit of fuel through Turkey as well as the price and volume of gas to be imported by Ankara during both phases of the project on tapping Shahdaniz, Azerbaijan’s biggest gas field in the Caspian Sea.
Abdullayev said an agreement on gas deliveries to Turkey during Phase 1 of Shahdaniz development is already in place. "However, as SOCAR representatives earlier said, all issues are being considered as a package. Thus, agreeing upon one of the issues does not mean that an agreement has been reached on the entire package."
Azerbaijan has so far sold gas to Turkey for $120 per 1,000 cubic meters, though domestic consumers in the neighboring country are paying more than $300, according to the website of the Turkish state-controlled natural gas monopoly Botas.
According to the gas supply contract concluded by Shahdaniz partners with Turkey, the price of Azerbaijani gas may be reconsidered a year after the deliveries began, 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.
The Shahdaniz field, operated by an international consortium, launched production in 2006. It has the capacity to produce 318 billion feet of gas from its initial phase, with another 706 billion cubic feet expected from Phase 2, which is due to begin in 2013. During the second stage of the project, Azerbaijan plans to export its gas to Europe.
The Shahdaniz Production Sharing Agreement was signed in June 1996. The shareholders are BP (operator – 25.5%), Statoil (25.5%), SOCAR (10%), LukAgip (10%), NICO (10%), Total (10%), and TPAO (9%).*
"We have held talks with Greece’s DEPA company. There is significant progress in this area," he said.
"Azerbaijan needs diversified export routes," the SOCAR president said, adding that Baku has also negotiated opportunities for gas export, its volumes and overall cooperation with Italy’s Edison.
Azerbaijan is already benefiting from its policy aimed at versatile gas delivery routes. The country is currently exporting gas to Turkey, Iran, Russia and Georgia. Abdullayev pointed out that expanding infrastructure for transporting gas to these markets will allow increasing the bulk of exports.
"Everything is up to us now. We have to expand our infrastructure for gas exports to Iran, Russia and Georgia," Abdullayev said.
SOCAR is considering new routes for exporting gas, including the trans-Adriatic, ITGI and Nabucco pipelines.
"At this point we are guided by the principles of commerce. We have to sell our gas in the market for a high price, which is the aspiration of any given producer," said Abdullayev.
According to him, Azerbaijan and Turkey continue holding talks on the exports of Azerbaijani gas. The parties are discussing signing a contract on the transit of fuel through Turkey as well as the price and volume of gas to be imported by Ankara during both phases of the project on tapping Shahdaniz, Azerbaijan’s biggest gas field in the Caspian Sea.
Abdullayev said an agreement on gas deliveries to Turkey during Phase 1 of Shahdaniz development is already in place. "However, as SOCAR representatives earlier said, all issues are being considered as a package. Thus, agreeing upon one of the issues does not mean that an agreement has been reached on the entire package."
Azerbaijan has so far sold gas to Turkey for $120 per 1,000 cubic meters, though domestic consumers in the neighboring country are paying more than $300, according to the website of the Turkish state-controlled natural gas monopoly Botas.
According to the gas supply contract concluded by Shahdaniz partners with Turkey, the price of Azerbaijani gas may be reconsidered a year after the deliveries began, 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.
The Shahdaniz field, operated by an international consortium, launched production in 2006. It has the capacity to produce 318 billion feet of gas from its initial phase, with another 706 billion cubic feet expected from Phase 2, which is due to begin in 2013. During the second stage of the project, Azerbaijan plans to export its gas to Europe.
The Shahdaniz Production Sharing Agreement was signed in June 1996. The shareholders are BP (operator – 25.5%), Statoil (25.5%), SOCAR (10%), LukAgip (10%), NICO (10%), Total (10%), and TPAO (9%).*
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