Azerbaijan Offers Russia to Purchase Gas

Oil&Gas Materials 2 July 2007 18:44 (UTC +04:00)
Azerbaijan Offers   Russia to Purchase Gas

Azerbaijan, Baku /corr. Trend S.Aliyev / The State Oil Company of Azerbaijan (SOCAR) has offered the Russian Company of Gazprom to purchase Azerbaijani gas, a source in SOCAR's Gas Operations Department stated on 2 July. Azerbaijani gas is offered for $230 per thousand cu.m.

Since 1 January 2007 Azerbaijan has refused to import Russian gas due to the increase of the process from $110/1 per thous. cu.m to $235/1 per thous. cu.m. After refusal, Azerbaijan adopted a program to increase gas production in the country up to 8 bln cu.m per year by the end of 2008.

In addition, currently Azerbaijan receives gas from the gas condensate field of Shah Deniz which has three working available wells with daily production of 15 mln cu.m. Presently Azerbaijan exports nearly 2.5 mln cu.m of gas to Georgia per day and intended to also begin export to Turkey in the near future.