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Azerbaijan ready to transit Russian gas

Oil&Gas Materials 18 March 2009 11:50 (UTC +04:00)

Azerbaijan, Baku, March 18 / Trend , S.Aliyev/

Azerbaijan is ready to transit the Russian gas to Iran after reconstructing infrastructure, particularly, compressor stations on the Iranian border, State Oil Company of Azerbaijan Republic (SOCAR) President Rovnag Abdullayev said. One more term to transit the Russian gas to Iran is that Tehran should not re-export it to Armenia.

At present Azerbaijan is implementing own swap gas deliveries to Iran which delivers fuel to Nakhchivan Autonomous Republic of Azerbaijan [it is blockade.].

This week, Russian Energy Minister Sergey Shmatko and Iranian Oil Minister Gulamhuseyn Nozari signed a memorandum on mutual understanding in oil and gas field. The memorandum envisages opportunity for Gazprom to carry out swap gas deliveries to the northern Iran instead hydrocarbon deliveries from the southern Iran to the Persian Gulf. Natural gas can be delivered both via Turkmenistan and a pipeline passing through Azerbaijan.

Iran's northern regions need gas majority of which is produced in the country's southern region. Azerbaijan is experienced in commercial gas deliveries to Iran. Azerbaijan delivered gas to Iran for at a commercial price - roughly $300 per 1,000 cubic meters in 2008.

Besides this, it is expected to implement one more joint gas project between Russia and Azerbaijan. The Russian Gazprom company expressed its intention to receive gas from Azerbaijan to supply Russia's southern region Dagestan with gas and in turn, indemnify gas in Azerbaijan from another source [not publicized].

The Gazi-Mahammad-Mozdok pipeline connects Azerbaijan and Russia. The Russian gas was imported via this pipeline by 2007. The Gazi-Mahammad-Astara-Bin-Biand pipeline connects Iran and Azerbaijan. The pipeline is 1,474.5- kilometers long, including 295.6 kilometers passing through Azerbaijan. The pipeline's carrying capacity is 10 billion cubic meters per year.

Specialists of the Azerbaijani oil and gas industry said that to realize both projects is technically possible. Azerbaijan can deliver own gas to the southern Russia and SOCAR, in turn, can receive the Russian gas in Turkey [at lower price than on its retail price on the Turkish market] to supply Petkim petrochemical complex with fuel.

Azerbaijan can be interested in transiting the Russian gas to Iran via transit fee for its pumping. The projects can be implemented seasonally - delivering the Azerbaijani gas to Russia in winter and transiting the Russian gas to Iran in the remained period.

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