Petkim preparing to work with Azerbaijani gas

Oil&Gas Materials 29 January 2011 14:37 (UTC +04:00)

Azerbaijan, Baku, Jan. 29 / Trend E.Ismayilov /

The Joint Petrochemical Company SOCAR-TURCAS start selling gas, much of which is intended for a petrochemical complex Petkim, a source in Petkim said on Saturday.

SOCAR-TURCAS got a license for wholesale of gas in the domestic market of Turkey, SOCAR reported earlier. The license was granted for a period of 30 years by a regulation group of the Turkish energy market.

"Upon completion of construction of the refinery and other investment projects, all gas will be used in our structure," the source said.

Earlier, an agreement was signed by Turkey for the acquisition and subsequent sale of gas in the amount of 1.2 billion cubic meters per year to Turkey. Most of the gas will flow to the petrochemical complex Petkim, in which SOCAR has equity participation while the remaining amount will be sold to consumers in the domestic market of Turkey.

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.