Azerbaijan, Baku, May 22 / Trend , E. Ismayilov/
Azerbaijan wants to export gas produced as a part of Shah Deniz I to Turkey at fair market prices, Azerbaijani Industry and Energy Minister Natiq Aliyev said.
"The rise in prices is being debated at the moment. Each product has its own price and Azerbaijani gas has its own price as well. We will try to achieve this market price," Aliyev said.
Turkey received gas from various sources and Baku wants Ankara to buy fuel under the formula according to which its buy gas from other countries.
Azerbaijan plans to increase price on gas exported to Turkey as a part of the Shah-Deniz I.
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.
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.
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%). Field's reserves are estimated at 1.2 trillion cubic meters of gas. The daily production is 22 million cubic meters. The daily production will reach 27 million cubic meters soon due to launch of new well.
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