TODAY.AZ / Business

Azerbaijan agrees to buy gas from Russian "Gasprom" using European rates

15 December 2005 [11:15] - TODAY.AZ
A working meeting of the Gazprom Open Joint Stock Company (OJSC) board chairman Alexey Miller and the first deputy Prime Minister of Azerbaijan Yagub Eyubov took place yesterday at the company’s central office.

The sides presented at the meeting considered terms and conditions of the Russia’s gas deliveries to Azerbaijan in 2006 and agreed to pass on the European rates (taking into account the transportation scheme) and specify the natural gas delivery volumes in 2006. Alexey Miller and Yagub Eyubov took a decision to sign relevant contracts shortly.

The domestic demand for gas of Azerbaijan is 9,5-10 billion cubic meters a year. The gas share in the country’s fuel and energy balance is about 45%. The gas volumes production in Azerbaijan for the previous years is around 5,5 billion cubic meters. Up to 40% of the gas produced in the county is provided by the Bahar oil field. Increasing own gas production volumes in regard to the launching of the Shah-Deniz oil field is planned starting 2006.

On 1 January 2004 Gazprom started to deliver gas to Azerbaijan. In December 2003 a long-term five-year contract on buy/sale of the natural gas was signed between Gazexport Ltd and the State Oil Company of Azerbaijan (SOCAR), effective from 1 January 2004 and valid till 31 December 2008. The contract stipulates gas deliveries up to 4,5 billion cubic meters a year to Azerbaijan.



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