Azernews.Az

ANKARA – Azerbaijan and Turkey have agreed on the exports and transit of Azerbaijani natural gas, Turkish Energy Minister Taner Yildiz has said following talks with his Azerbaijani counterpart Natig Aliyev in Ankara, Turkish media reported.

The agreements, which cover sale of Azerbaijani gas to Turkey and its exports to Europe, are to be signed after the two countries have finalized work on the documents.

Yildiz said that "several formal procedures" remain to be carried out to sign the deal. He said that according to the agreement, Turkey will buy annually 6 billion cubic meters of gas produced during Phase 2 of development at Azerbaijan’s huge Shahdaniz field in the Caspian Sea. The deal also envisions delivery of 10 billion cubic meters of Shahdaniz gas to energy-thirsty European markets through Turkey, Yildiz said.

Minister Aliyev in turn said Azerbaijan and Turkey have no differences of opinion on the gas supply issue.

Turkey previously paid $120 per 1,000 cubic meters of Azerbaijani gas. The new contract cites a new price for the fuel supplied during Phase 1 of Shahdaniz development as well as envisions the sale of gas produced during Phase 2, which is due to begin in 2013. The price of gas was not specified.

Under the standing agreement, Turkey is to import 6.6 billion cubic meters of gas per year during the first stage of the project.

As for the transit of gas through Turkish territory, Azerbaijan is considering options to take its gas to European markets as part of the Southern Gas Corridor, which includes a slew of ambitious projects supported by the European Union, including the Nabucco gas pipeline.