...

Prime minister's adviser: Turkey's energy market moves towards liberalization

Oil&Gas Materials 19 October 2010 19:21 (UTC +04:00)
Prime minister's adviser: Turkey's energy market moves towards liberalization

Azerbaijan, Baku, Oct. 19 /Trend, R.Hafizoglu, E.Ismayilov/

SOCAR's entrance to the retail gas sales market of Turkey refutes the opinions that the country's market is closed to foreign companies, Turkish Prime Minister's adviser on Eurasia Geybulla Ramazanoglu told Trend by telephone on Tuesday.

According to him, currently the market in Turkey is moving towards liberalization. The view that the Turkish market is closed to foreign companies is not true. SOCAR's entrance to the Turkish market serves the interests of both countries.

SOCAR's entrance to the Turkish market earlier than other foreign companies testifies the high level of economic and political relations between Ankara and Baku, said Ramazanoglu,
"I believe that in the future, not only SOCAR, but any other such serious companies as SOCAR will be able to enter the market of Turkey," he added.
He also believes that the activities of SOCAR in Turkey will further develop.

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 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 earlier.

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.

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.

Tags:
Latest

Latest