SOCAR does not intend to abandon swap gas supplies from Azerbaijan to Iran
Azerbaijan, Baku, July 22 /Trend, E.Ismayilov/
Construction of a new gas pipeline that will connect Igdir (Turkey) and Sederek in Nakhchivan Autonomous Republic (NAR) does not imply termination of swap gas supplies from Azerbaijan to Iran, a source at SOCAR (State Oil Company of Azerbaijan) said.
Azerbaijan delivers gas to the Nakhchivan Autonomous Republic owing to swaps with Iran. Azerbaijan transports about 1-1.2 million cubic meters of gas per day to Iran.
"Construction of a new gas pipeline does not mean termination of swap supplies to Iran, since there is a long term contract between the parties," said the source.
SOCAR intends to build a new pipeline to improve the quality of gas supply to NAR, which is in blockade as a result of the occupation of Azerbaijani lands by Armenia. Also the second pipeline would reduce the dependence of NAR on Iran and strengthen its energy security.
Another source at SOCAR said earlier that feasibility Study has been prepared within the gas pipeline Igdir-Nakhchivan. SOCAR will take all costs for the construction of a new pipeline Igdir-Nakhchivan, according to the memorandum signed between Azerbaijan and Turkey.
Today SOCAR is also working to achieve long-term contract with the Iranian side. However, even with the desire to supply large volumes of gas, the sides can not achieve their goals because of absence of the necessary infrastructure. The technical condition of pipeline infrastructure between the two countries does not enable transporting large volumes of gas today in southern direction, even if the Iranian side would like to buy up to five billion cubic meters of Azerbaijani gas per year. Currently, to increase gas supplies to Iran, SOCAR is expanding the capacity of gas compressor station in Astara. The gas pipeline from Azerbaijan to Iran will also be reconstructed. Upon completion of the works scheduled for the autumn, a contract on long-term supplies is expected to be signed and increase gas supply volume up to 3-3.5 million cubic meters per day from the current 1.2 million cubic meters.