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SOCAR plans to increase gasification greatly in Azerbaijan: SOCAR president

Oil&Gas Materials 3 July 2009 14:43 (UTC +04:00)
SOCAR plans to increase gasification greatly in Azerbaijan: SOCAR president

Azerbaijan, Baku, July 3 / Trend E. Ismayilova /

Azerbaijani President Ilham Aliyev charged SOCAR with raising gasification level all over Azerbaijan. Azerigaz CJSC joined SOCAR this week, SOCAR head Rovnag Abdullayev said on July 3.

"Great changes and investments must be implemented in gas sphere. Gas must be supplied at the highest level in Azerbaijan. Azerbaijani President set us a task to provide each house and each family with highly qualitative gas," SOCAR president said. 

Special programs will be realized shortly. So, growth in gas distribution and supply will be qualitative and quantitative, Abdullayev said. 

Azerigaz will preserve its functions. But several structural changes will be made in accordance with international standards. Major changes are expected to be done in management.

Commenting increase of prices more that two times for consumers, Abdullayev said that SOCAR sold gas to Azerigaz upon subsidies at low prices fixed by state. SOCAR bought gas at 58 manat per 1,000 cubic meters within the first stage of Shakh Deniz offshore gas condensate field development in Azerbaijani sector of the Caspian Sea. But it sold gas for Azerigaz at 42 manat per 1,000 cubic meters.

It will be possible to speak about changes (possible reduction) of price for consumers' gas only after research and study, Abdullayev said. "Tariff council made this decision on the basis of reports of Azerigaz. All was calculated, especially expenses. After liquidation of parallelism and certain changes in management, we will be able to see how to reduce expenses for prices reconsideration, he said.   

As Azerigaz sold gas at low price, it had no funds for gasification of regions, Abdullayev said.

"Presently, we try to provide regions and villages with gas on the basis of a new program upon the President's decree. We will try to reach maximal percent of gasification," Abdullayev said.

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