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2001 contract for Azerbaijani gas flows to Turkey expires

Oil&Gas Materials 27 April 2021 09:25 (UTC +04:00)
2001 contract for Azerbaijani gas flows to Turkey expires

BAKU, Azerbaijan, Apr.27

By Leman Zeynalova – Trend:

The 2001 contract for delivering 6.6 billion cubic meters of gas per year to Turkey from Azerbaijan expired on Apr.16 and no new agreement has been signed so far, Trend reports via S&P Global Platts.

“April 16 was the last day of flows,” Ibrahim Ahmadov, deputy head of the public relations and events department at SOCAR, told Trend.

The source said talks were continuing between Turkey's state gas importer Botas and the Azerbaijan Gas Supply Company (AGSC), the company representing the Shah Deniz consortium, over a possible renewal, but that flows had been halted because they could not continue past the contract's end-date on April 16.

However, the source pointed out that with the arrival of milder spring weather, gas demand in Turkey is falling, which -- coupled with the availability of other import options such as spot LNG -- means the halt of supply was unlikely to cause any issues.

Therefore, the source said, there is currently no pressing need for the contract to be renewed immediately.

Two other sources with knowledge of the matter pointed out that given the close relations between Turkey and Azerbaijan, it was likely that the contract would be renewed, but that the terms may be different from the contract that recently ended.

Meanwhile, a spokesman for the operator of the TANAP pipeline said that no increase in transit volume had been requested for April and no future increases were currently scheduled.

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Follow the author on Twitter: @Lyaman_Zeyn

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