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Russian Gazprom to increase purchase of Azerbaijani gas (UPDATE)

Oil&Gas Materials 21 January 2011 22:35
In 2012, Russian Gazprom will increase the purchase of Azerbaijani gas, said the Russian company. The agreement was reached during the talks between the President of the State Oil Company of Azerbaijan Republic (SOCAR) Rovnag Abdullayev and Chairman of Gazprom Alexei Miller on Friday.
Russian Gazprom to increase purchase of Azerbaijani gas (UPDATE)

Editor's note.: updated after first paragraph (first version was posted at 22:12)

In 2012, Russian Gazprom will increase the purchase of Azerbaijani gas, said the Russian company. The agreement was reached during the talks between the President of the State Oil Company of Azerbaijan Republic (SOCAR) Rovnag Abdullayev and Chairman of Gazprom Alexei Miller on Friday.

At the meeting, the sides summed up the cooperation in 2010. It was noted that gas deliveries from Azerbaijan to Russia are the most reliable and safest route of delivery of Azerbaijani gas, the company reported.

The volume of gas purchases in 2011 (2 billion cubic meters) was confirmed at the meeting. CEOs have agreed to develop a successful and fruitful cooperation and increase purchases in 2012 over previously agreed volume - in addition to the contract dated Sept. 3, 2010. It was agreed that the Azerbaijani gas will be purchased based on the price formula, tied to the oil basket and on the volume of purchases in the long term, in absence of restrictions.

Following the meeting, Alexei Miller and Rovnag Abdullayev noted that the development of cooperation between Gazprom and SOCAR is a strategically important area of cooperation between the two countries.  

"Gas cooperation between Azerbaijan and Russia is the most commercially viable option for both partners. Gazprom has no obstacles in order to provide the technical ability to import Azerbaijani gas in an even larger volume for any period of time agreed with partners in Baku. Results of negotiations confirmed it, and we agreed to increase purchases in 2012," said Miller.

The medium-term contract (with a possibility of extension) for the sale of Azerbaijani gas to Russia was signed between SOCAR and Gazprom in Baku on Oct. 14, 2009. According to the addendum to the contract signed in early September 2010 in Baku, Gazprom will receive two billion cubic meters in 2011, and over two billion cubic meters in 2012.

Supplies of Azerbaijani gas to Russia began from Jan. 1 last year.

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