SOCAR continues gas exports in northern and western directions

Azerbaijan, Baku, May 3 / Trend E.Ismayilov /

Currently, the State Oil Company of Azerbaijan Republic (SOCAR) exports to Georgia gas in the amount of one million cubic meters a day, a source in the oil and gas industry said.

"The company's natural gas exports to Georgia are underway. The company exports about one million cubic meters of gas per day," the source said.

SOCAR carries out gas supplies to Georgia via a pipeline linking the two countries in the Gazakh region of Azerbaijan. The pipeline's capacity is about three billion cubic meters of gas per year.

In November 2008, Azerbaijan and Georgia signed the agreement to stir up SOCAR's activity on Georgian gas market during next 5 years beginning from 2009. Under the agreement, SOCAR will launch subsidiaries to supply gas to consumer groups pinpointed by the Georgian government.

Dec. 26, SOCAR and the Georgian Government signed an agreement to operate 30 gas supply grids and gas distribution networks in the Kakheti, Mtskheta-Mtianeti, Shida and Kvemo Kartli, Ajaria, Guria, Imereti, Samegrelo regions of Georgia. These networks are operated by 24 companies. The sides also signed an agreement on gas deliveries for five years, including to social groups of subscribers identified by the Georgian government under the invariability of prices within five years. SOCAR received the networks in February 2009.

The source said that SOCAR also continues export operations in the direction of Russia. The company's export is carried out at the rate of 3bln cubic meters of gas. This figure represents the contracted volumes for this year - one billion cubic meters.

The medium-term contract on purchase-sale of Azerbaijani gas to Russia (with the possibility of extension) was signed between SOCAR and Gazprom in Baku Oct. 14. It covers 2010-2014. Under the contract, the Azerbaijani side will annually supply gas amounting to no less than 500 million cubic meters to Russia. The contract did not specify a limit to the gas supply volume. SOCAR will notify the opposite side of the amount which the company can deliver for the next six months.

It was initially planned that SOCAR will supply Russia with 500 million cubic meters of gas. But a decision was made to increase supplies twice, SOCAR president Rovnag Abdullayev said earlier.

Azerbaijan launched gas supplies to Russia Jan.1, 2010.

Gazprom and SOCAR have agreed upon volumes of Azerbaijani gas to be exported to Russia in 2011. In 2011, this figure would be about two billion cubic meters compared to one billion this year.