Azerbaijan, Iran continue talks on long-term gas supply contract
Azerbaijan, Baku, June 2 / Trend E.Ismayilov /
Representatives of the State Oil Company of Azerbaijan Republic (SOCAR) will soon leave for Iran to hold talks on long-term contract on deliveries of Azerbaijani gas to Iran, a senior representative of SOCAR said.
"The work to achieve long-term contract with the Iranian side are underway and the company' delegation will visit Iran for talks soon," the source said.
The source did not name dates of the visit.
Azerbaijan and Iran are connected with the Gazi-Magomed-Astara-Bind-Biand gas pipeline, which runs an approximate 1,475 kilometers. Its capacity was once 10 billion cubic meters a year, but has dropped in the recent past. The route is a branch of the Gazakh-Astara-Iran pipeline commissioned in 1971. Three compressor stations were built - Gazi-Magomed, Aghdash and Gazakh.
SOCAR and NIGEC signed a short-term contract for gas supplies to Iran in January. The signing of a long-term contract between the sides is expected in autumn 2010.
Currently, SOCAR constructs new gas compressor station on the border with Iran to increase the supply of Azerbaijani gas in the framework of realization of a long-term contract. Signing of this contract is scheduled for fall of 2010. The station may raise the pressure of supplied gas to 75 atmospheres, which will increase the volume of the Azerbaijani gas exports to Iran.Construction of the station is necessary to ensure daily Azerbaijani gas exports to Iran in the amount of 5 million cubic meters.
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