Erdogan due in Baku for signing of gas deal - report
Turkish Prime Minister Recep Tayyip Erdogan is
scheduled to visit Azerbaijan this month to attend the signing of
an agreement between the two countries on transporting Azerbaijani
gas to Turkey and further to Europe, Turkey’s Sabah newspaper
reported.
Baku and Ankara announced early last week they had reached agreement in principle on gas supplies. According to Turkish Energy Minister Taner Yildiz, Azerbaijani President Ilham Aliyev will attend the signing ceremony. The anticipated agreement will put an end to the long-standing differences on gas supplies. Discussions had focused on the price of gas exported to Turkey during Phase 1 of developing Azerbaijan’s biggest gas field Shahdaniz; the price and volume of gas to be sold to Turkey during Phase 2; and the transit of fuel to Europe.
The new price agreed by Turkey and Azerbaijan has not yet been disclosed, but experts say the price will be $200 per 1,000 cubic meters.
Under the previous agreement, the price stands at $120 -- considerably lower than those in world markets. According to the gas supply contract concluded by Shahdaniz partners with Turkey, the price is to be reconsidered a year after the start of gas deliveries, therefore, the new price should have gone into effect on April 15, 2008. Also, Baku sought to transport its gas produced during Phase 2 to Europe through Turkey and sell it for market-level prices, while Ankara offered to buy Azerbaijani gas and then sell it to European consumers on its own. This had caused a long-standing dispute between the two countries and diminished prospects for the Nabucco pipeline project, which aims to pump gas from the Caspian and Central Asia regions to energy-thirsty European markets.*
Baku and Ankara announced early last week they had reached agreement in principle on gas supplies. According to Turkish Energy Minister Taner Yildiz, Azerbaijani President Ilham Aliyev will attend the signing ceremony. The anticipated agreement will put an end to the long-standing differences on gas supplies. Discussions had focused on the price of gas exported to Turkey during Phase 1 of developing Azerbaijan’s biggest gas field Shahdaniz; the price and volume of gas to be sold to Turkey during Phase 2; and the transit of fuel to Europe.
The new price agreed by Turkey and Azerbaijan has not yet been disclosed, but experts say the price will be $200 per 1,000 cubic meters.
Under the previous agreement, the price stands at $120 -- considerably lower than those in world markets. According to the gas supply contract concluded by Shahdaniz partners with Turkey, the price is to be reconsidered a year after the start of gas deliveries, therefore, the new price should have gone into effect on April 15, 2008. Also, Baku sought to transport its gas produced during Phase 2 to Europe through Turkey and sell it for market-level prices, while Ankara offered to buy Azerbaijani gas and then sell it to European consumers on its own. This had caused a long-standing dispute between the two countries and diminished prospects for the Nabucco pipeline project, which aims to pump gas from the Caspian and Central Asia regions to energy-thirsty European markets.*
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