Price Marks Volume of Azerbaijani Gas Supply to Turkey
Azerbaijan, Baku, 6 June / Trend corr S. Aliyev/ Turkey made proposals on the volume of gas it intends to purchase from Azerbaijan during the 2nd stage of Shah Deniz project, however, "not all proposals are acceptable to the consortium partners [developing the field]," a highly-ranking official of the State Oil Company of Azerbaijan (SOCAR) said on 5 June.
"The volume which we will be able to offer Turkey, within the 2nd stage of Shah Deniz, is contingent also on the gas prices of the 1st stage of the project. Higher the price for Azerbaijani gas is, more is the gas volume we can offer," he said.
Presently, Turkey and Azerbaijan Gas Supply Company (engaged in sale of gas from Shah Deniz) are negotiating on increase price of the gas supplied to the country within the 1st stage of the project. On 15 April 2008, the supply term of Azerbaijani gas from Shah Deniz to Turkey expired at $70-$120 per 1,000 cu m. When a decision regarding change in gas price for Turkey will be finalized, the country may pay a new price. Gas coast will be maximally improved. "It may exceed even $300 per 1,000 cu m," SOCAR representative said.
The contract on development of off-shore Shah Deniz field was signed on 4 June 1996. The sides to the contract are ВР (operator - 25.5%), Statoil (25.5%), SOCAR (10%), LukAgip (10%), NICO (10%), Total (10%), and TPAO (9%).
The gas production in Shah Deniz commenced in December 2006. The gas is transported to Georgia and Turkey via South Caucasus gas pipeline. Azerbaijan also purchased the gas. Some 8.6bln cu m of gas will be produced at the field during the 1st stage's production peak, with 6.6bln cu m of it being contracted by Turkey.
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