Azerbaijan, Baku, May 19 / Trend , E.Ismayilov, U.Ismayilova/
Price of the Azerbaijani gas produced as part of the first development stage of the offshore Shah Deniz field will rise, Azerbaijani Deputy Industry and Energy Minister Gulmammad Javadov said on May 19.
"Price, of course, will be increased, but how much - it is a commercial issue between the companies," Javadov said.
Javadov said the negotiations between the Turkish Botas pipeline company are lasting and "perhaps, we will receive a positive result".
Turkey buys Azerbaijani gas at $120 for 1,000 cubic meters. The contract also stipulates that the gas price can be considered a year after the supplies is launched. So, new prices (which the sides are negotiating) will be applied from April 15, 2008.
Gas price at $120 for 1,000 cubic meters is not realistic gas prices on world markets. Turkey sells gas at $380 per 1,000 cubic meters in domestic market.
Under the contract, 6.6 billion cubic meters of gas will be transported to Turkey via Baku-Tbilisi-Erzurum per year as part of the Shah Deniz-1. Shah Deniz partners plan to achieve this volume in 2009.
Do you have feedback? Contact our journalist at: [email protected]