"We will retain the Russian natural gas price set by the December 2005 contract with Gazexport until the end of this year. The price makes $110 per 1,000 cubic meters, as against $60 per 1,000 the year before, and I don’t think it will change," Melikov said.

According to Itar-Tass, neither the State Oil Company of Azerbaijan, which buys natural gas for Azerbaijan, nor Azerigaz, which distributes gas supplies, have been notified by Gazexport about a possible price rise due to higher charges on gas exported to Kazakhstan.

Experts estimate the Azerbaijani natural gas needs for this year at about 10-12 billion cubic meters. Azerbaijan will produce 4.5 billion cubic meters of gas, and import the same amount from Russia.

Three billion cubic meters of gas will be produced on the Azeri-Chirag-Gyuneshli bloc on the Caspian Sea shelf, and about one billion – on the Shakh Deniz sea bloc, whose development will start in fall.

Azerbaijan has drafted a program of larger gas production, which will reach 8-10 billion cubic meters in the near future, a source at the Industry and Energy Ministry told Itar-Tass. The full-scale development of the Azeri-Chirag-Gyuneshli bloc and the initial development of the Shakh-Deniz bloc will fully meet the Azerbaijani gas needs.