AzMeCo asks Gazprom to suspend gas supplies (UPDATE)

Economy Materials 21 October 2015 14:14 (UTC +04:00)

Details added (first version posted on 12:02)

Baku, Azerbaijan, Oct. 21

By Maksim Tsurkov - Trend:

The Azerbaijani AzMeCo company has sent an official appeal to the Gazprom with the request to suspend the supplies of gas to the methanol plant, the AzMeCo company told Trend Oct. 21.

Earlier, the press service of Gazprom export company told Trend that the Azerbaijani AzMeCo company didn't appeal to the Russian Gazprom regarding the termination of gas deliveries to the methanol plant.

"This request is connected with the fall in world export prices for methanol, so maintaining the current level of purchase prices for the gas supplied by Gazprom leads to losses at AzMeCo," said the company. "In connection with the fact that the operations on the purchase of Russian gas within the framework of the signed contract are unprofitable, the company asked to suspend gas supplies to Azerbaijan starting from Oct. 21."

Methanol prices on the European market fell from 354 euros per ton in January 2015 to 295 euros per ton in October 2015.

Azerbaijan Methanol Company (AzMeCo) planned to purchase up to 2 billion cubic meters of gas per year from Russia's Gazprom Export LLC.

The natural gas supply had to ensure the guaranteed loading of 100 percent of facilities of AzMeCo methanol plant in Garadagh.

AzMeCo methanol plant is one of the largest investments in non-oil sector of the country. For the first time in Azerbaijan, the company received methanol after processing natural gas as raw material.

British Petroleum is the main buyer of methanol produced at the AzMeCo plant. Mainly Georgian port of Kulevi is used in the process of the sale of methanol. AzMeCo introduced innovations in the sale and transportation of methanol. The transportation of methanol through Volga-Don canal was carried out for the first time, and its first large-scale loading at the ports of Poti and Kulevi was held.

Methanol is exported to Turkey, Romania, Slovenia, the Netherlands and Belgium.

Edited by CN


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