Azerbaijan satisfied with gas price Russia will pay

“500 million cubic meters specified in the agreement we signed yesterday shows the minimum amount we will sell. No maximum limit was set in the agreement. If we have more free gas, we will increase export,” he added.

He declined to say how much Azerbaijan will charge Russia for 1,000 cubic meters.

“This is a five-year agreement. The price is normal and suits us,” he added.

Dmitry Medvedev traveled to Baku, along with the chief of Russia’s state-run natural gas monopoly, Gazprom, to oversee the deal’s signing.

Rovnag Abdullayev said the existing northbound pipeline allows pumping 10 billion cubic meters of gas a year.

According to him, Azerbaijan is in negotiations with Gazprom and other European companies on the sale of natural gas from Shah Deniz Phase 2.

Russia’s business paper Kommersant reported Russia agreed to purchase Azerbaijani natural gas at a record price of $350 per 1,000 cubic meters to try and make a rival Western-backed gas pipeline project unfeasible.

/APA/