SOCAR to provide Balkans with gas

Oil&Gas Materials 9 June 2011 15:20 (UTC +04:00)

Azerbaijan, Baku, June 9 / Trend E.Ismayilov /

Certain volumes will be available in several Balkan countries regardless of the route chosen to transport the Azerbaijani gas, a senior representative of the State Oil Company of the Azerbaijan Republic (SOCAR) said.

"Not only Bulgaria and Greece will receive certain volumes. Our precondition in talks on the Nabucco project, ITGI and TAP, is that any of these three projects in being constructed to transport our gas to Europe," the source said.

The source said these volumes are small compared with those volumes, which expects companies such as OMV, RWE and others.

The amount to be delivered to Balkan countries will fluctuate in the range of hundreds of millions to 1 billion cubic meters.

A percentage ratio of gas that reaches the markets of these countries to the general volume of gas that SOCAR will sale in Europe will depend on the desired volume of purchases, volumes that SOCAR will be ready to sell and the gas price.

SOCAR has repeatedly stated that it will supply about 10 billion cubic meters of gas per year to the European market under the Shah Deniz-2.

The source agreed with that the revenues from gas sales will never reach the amount of revenues from oil sales.

"It is certainly hard to compare the net price for producers that are at least at a distance of 2,000 kilometers from the main market, with a net profit from the oil sale at the current stage of development of the gas market," the source said.

According to the source, one can expect that the net -profits from natural gas will be higher than that calculated now with an increase in gas demand, a tendency towards an increase in gas prices, not only in relation to oil, but also given the fact that nuclear stations are closed and gas is a clean form of energy.