Azerbaijan, Turkey agree on gas prices until 2018
Azerbaijan, Baku, Nov. 1 / Trend , A.Tagiyeva /
Azerbaijan and Turkey reached an agreement on gas prices and the prices will remain unchanged until 2018, Turkish Energy and Natural Resources Minister Taner Yildiz told reporters, the Aksam newspaper reported on Tuesday.
Price for the Azerbaijani gas for Turkey in the first stage of development of the Shah Deniz field will remain unchanged until 2018, Yildiz said. But, he did not specify the cost of gas.
He noted that the prices agreed with Azerbaijan are the most profitable in the region.
In late October, Azerbaijan and Turkey signed a package of gas contracts which includes cost issues of Azerbaijani gas for Turkey in the Shah Deniz-2 project, volume of gas supplies to Turkey from the field after 2017, as well as a transit agreement for Azerbaijani gas transportation through Turkey.
Reserves of the Shah Deniz field are estimated at 1.2 trillion cubic meters of gas.
Gas, produced from the field, is considered as the main source for the projects of the Southern Gas Corridor. Azerbaijan plans to supply 10 billion cubic meters of gas to Europe from 2017 within the Shah Deniz 2 project.
Another 6 billion cubic meters will be delivered to Turkey in addition to 6.6 billion cubic meters within the Shah Deniz first stage of development.
The contract to develop the offshore Shah Deniz field was signed June 4, 1996. Participants in the agreement are: BP (operator) - 25.5 percent, Statoil Hydro - 25.5 percent, NICO - 10 percent, Total - 10 percent, LukAgip - 10 percent, TPAO - 9 percent, SOCAR-10 percent.