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Rumors on Azeri gas networks’ transfer to Gazprom dismissed

17 June 2011 09:51 (UTC+04:00)
Rumors on Azeri gas networks’ transfer to Gazprom dismissed

BAKU – Azerbaijan’s state energy firm Socar has dismissed reports saying that the gas distribution network of Baku could be granted to the management of Russian gas giant Gazprom.

Gazprom’s CEO Alexei Miller recently said that the company was seeking to buy shares of Germany’s biggest energy firm, EON, and its subsidiary, which reportedly could grant it the management of the gas distribution networks of Baku and the whole Absheron Peninsula, which encompasses the Azerbaijani capital’s surrounding regions.

Azerigas, which is part of Socar, has selected EON as a contractor to develop the project on overhauling the two gas networks. A joint venture is expected to be established with the German company.

"We have no intention to grant the Absheron and Baku gas systems to Gazprom or any other foreign company," said head of Azerigas, Akbar Hajiyev. "This is a network that belongs to Azerigas, to Socar, and it will remain part of Azerigas. A tender had merely been announced for settlements around Baku and preparations are underway to sign an agreement with EON Ruhrgas (an EON subsidiary). EON Ruhrgas will carry out the operations not at its expense, but will receive a loan from Azerigas."

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