SOCAR Should not Sign Long-Term Contract with Georgia on Gas Suplly: Minister
Azerbaijan, Baku, 4 June / corr. Trend E. Ismayilov/ The minister of industry of energy of Azerbaijan Natig Aliyev believes that Azerbaijan should not sign a long-term contract with Georgia on supply of gas produced by State Oil Company of Azerbaijan (SOCAR) in the field out of its own proceeds.
"The long term agreements are frequently violated. I think that it would be better to sign them for short-term period. We have enough time to agree upon it," the minister said to media on 4 June.
SOCAR supplies Georgia 1.5mln cu m of gas a day. The contract on supply of 500mln cu m of gas in 2008 signed in spring will terminate by the end of year. The cost of gas is not divulged.
"It would not be good for Azerbaijan to make forecast for 5 to 10 years into the future. We do not need it at all. Short-term contracts are better," Aliyev said.
Apart from the contract with SOCAR, Georgia has a gas supply contract with his partners on development of Shah Deniz. Georgia is also supplied by gas instead of the payments for transit of Azerbaijani fuel via South Caucasus gas pipeline to Turkey.
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