Azerbaijan, Baku, Oct.7 / Trend E. Ismailov /
The State Oil Company of Azerbaijan (SOCAR) and the Turkish state pipeline company Botas will sign a contract in the near future that envisages natural gas supply by the Turkish company to SOCAR's subsidiary in Turkey and its subsequent sale on the Turkish domestic market, a senior representative of SOCAR said.
The representative said that yesterday the Turkish Government took a decision on this issue, and now the sides will agree on the point of delivery of gas to Turkey and other technical issues of the project.
The main amount of gas is envisaged for the Petkim petrochemical complex in Turkey. If excess gas is available, it will be sold on the domestic market of Turkey, the SOCAR representative said.
According to a memorandum of understanding signed between the Azerbaijani Industry and Energy Ministry and Energy and Mineral Resources Ministry of Turkey, SOCAR's affiliates will annually receive from Botas 1.2 billion cubic meters of gas from 6.6 billion cubic meters contracted for Turkey in the first stage of development of the Azerbaijani gas condensate Shah Deniz field. Gas will be transported by Botas for SOCAR until late 2016.
The cost of gas to the amount of 1.2 billion cubic meters will be made up of the cost of imported gas, cost of transportation inside the country and other tax duties.
Commercial terms of delivery of these amounts will be agreed between SOCAR and Botas under a "take or pay" contract.
Also, according to the memorandum, Botas will supply two billion cubic meters of gas to SOCAR for export to Syria and/or Bulgaria or Greece on terms to be agreed.