Shahdaniz shareholders seek hike in price for Turkey
The shareholders of the project on developing Azerbaijan's biggest
field Shahdaniz are seeking to increase the price of gas sold to
Turkey, an energy executive said.
According to the agreement signed five years ago, gas is to be marketed to the neighboring country for $120 per 1,000 cubic meters during Phase 1 of Shahdaniz development.
The price for gas in world exchanges has topped $300.
"Talks are under way, and we have conveyed to our Turkish counterparts that both Azerbaijan and partner countries have objections with regard to the prices," Vice-President of the Azeri state oil company SOCAR, Elshad Nasirov, told journalists. "The Turkish side has agreed with us. Nonetheless, we are continuing negotiations for the time being."
Production at Shahdaniz is expected to peak in 2010-12, reaching 10-20 billion cubic meters during Phase 2 of the project development.
A new pipeline to export Shahdaniz gas may be built in the future in parallel to the existing Baku-Tbilisi-Erzurum (BTE) conduit.
According to the agreement signed five years ago, gas is to be marketed to the neighboring country for $120 per 1,000 cubic meters during Phase 1 of Shahdaniz development.
The price for gas in world exchanges has topped $300.
"Talks are under way, and we have conveyed to our Turkish counterparts that both Azerbaijan and partner countries have objections with regard to the prices," Vice-President of the Azeri state oil company SOCAR, Elshad Nasirov, told journalists. "The Turkish side has agreed with us. Nonetheless, we are continuing negotiations for the time being."
Production at Shahdaniz is expected to peak in 2010-12, reaching 10-20 billion cubic meters during Phase 2 of the project development.
A new pipeline to export Shahdaniz gas may be built in the future in parallel to the existing Baku-Tbilisi-Erzurum (BTE) conduit.
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