Azernews.Az

By Nigar Orujova, AzerNews Staff Writer

Turkey buys Azerbaijani gas at the lowest prices, Zaman newspaper quoted Turkish Energy Minister Taner Yildiz as saying on Monday.

"Azerbaijani gas still remains the most profitable for Turkey," he said.

According to the Turkish state pipeline company Botas, Turkey imported 39.7 billion cubic meters of gas in 2011. Russia is the biggest exporter of gas to Turkey, and the country is followed by Iran and Azerbaijan.

In 2011 Turkey imported 16 percent of gas from Azerbaijan, which is 6.6 billion cubic meters.

Head of SOCAR Turkey Energy, the Azerbaijani state energy firm's unit in Turkey, Kenan Yavuz said in an interview with the Turkish edition Para Dergisi, "At present, one cubic meter of gas from Iran costs Turkey $500. Gas from Russia is cheaper than Iranian by 30 per cent, while Azerbaijani gas - by 40 per cent."

He said that after TANAP project (Transanatolia gas pipeline) is implemented, Turkey will receive 6 billion cubic meters of gas from Azerbaijan. "If necessary, import of gas from Azerbaijan to Turkey will be increased."

At present, Turkey receives gas from the Azerbaijani gas condensate field Shah Deniz through the South Caucasus Pipeline. According to the contract, Turkey must receive 6.6 billion cubic meters of gas within the first stage of the field development. Turkey will receive 6 more billion cubic meters of gas from the second stage.

Previously, the cost of gas for Turkey was $120 per 1,000 cubic meters. But later the price on Azerbaijani gas increased after the cost of fuel rose in world markets.

Total reserves of Shah Deniz field are estimated at 1.2 trillion cubic meters of gas.

The contract to develop the offshore Shah Deniz field was signed June 4, 1996. Participants to the agreement are: BP (operator) - 25.5 percent, Statoil - 25.5 percent, NICO - 10 percent, Total - 10 percent, LukAgip - 10 percent, TPAO - 9 percent, SOCAR-10 percent.