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Рђzerbaijan and Gazprom agreed to pass on to European price level

Politics Materials 14 December 2005 19:19
Рђzerbaijan and Gazprom agreed to pass on to European price level

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 today at the company’s central office, according to the Gazprom press-release disseminated on 14 December, Trend reports.

The document notes, during the talks the terms and conditions of the Russia’s gas deliveries to Azerbaijan in 2006 have been considered. The sides agreed to turn to the European price level (taking into account the transport 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 since 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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