SOCAR-TURCAS receives license to sell gas in Turkey

The Joint Petrochemical Company SOCAR-TURCAS got a license for wholesale of gas in the domestic market of Turkey, the State Oil Company of the Azerbaijan Republic (SOCAR) reported on Wednesday.

The license was granted for a period of 30 years by a group of regulation of the energy market in Turkey.

"SOCAR-TURCAS is the most important asset of SOCAR and Azerbaijan outside the country," the report says.

Earlier, there were signed an agreement with the Turkish side on the acquisition and subsequent sale of gas in the amount of 1.2 billion cubic meters per year to Turkey. Most of the gas will flow to the petrochemical complex Petkim, in which SOCAR has equity participation, and the remaining amount will be sold to consumers in the domestic market of Turkey.

Based on the memorandum of understanding signed between the Azerbaijani Industry and Energy Ministry and Turkish Energy and Mineral Resources Ministry, an affiliate of SOCAR will annually receive from Botas 1.2 billion cubic meters of gas of 6.6 billion cubic meters contracted for Turkey in the first stage of development of the Azerbaijani gas field Shah Deniz. Botas will transport gas for SOCAR by late 2016.

The price of gas in the volume of 1.2 billion cubic meters will consist of the cost of imported gas, the cost of transportation within the country and other tax duties.

Business conditions of delivering these volumes will be agreed between SOCAR and Botas, under contract "take or pay".


/Trend/