Azerbaijan, Baku / corr. Trend I.Khalilova / The Vice Prime Minister of Azerbaijan, Yagub Eyyubov , said that the Government of Azerbaijan confirmed the fuel and energy balance of the Country for 2007. The Vice Prime Minister does not exclude the probability of increasing the mazut production in Baku Refineries.
"The production volume may increase by 800-900.000 tons and generally equal 2.5-2.6 mln tons," he stated.
Eyyubov explains such growth rates of mazut production, are due to the refusal to receive Russian gas import in a volume of 4.5 bln cu.m. from the 1st of January 2007.
"Accordingly we will send large-volume oil to be refined to mazut. Previously, portions of this oil product were exported, presently we use it for producing electricity and sell only a small part," he added.
The refusal to import Russian gas did not affect the export of oil products because the State Oil Company of Azerbaijan (SOCAR) compensated it through increasing its own oil production.
According to the Vice Prime Minister, they do not need to purchase Russian gas for $235 per thousand cu.m . while the prime cost of the Azerbaijani gas is lower.
"Everything has been taken into consideration in the energy balance. If earlier the electricity production demand of the Country was ensured through Russian gas, presently even we try to sell electricity and gas to other countries," Eyyubov said.
Presently Azerbaijan exports gas produced from Shah Deniz field, as well as its own gas to Georgia.
"We are going to sell the gas in the volume demanded by Georgia. In addition, we intend to join the European market. The export of technical gas to Turkey via South Caucasus pipeline has recently begun," Eyyubov said.