Weekly economic review (June 22-26)

Analysis Materials 29 June 2015 16:51 (UTC +04:00)

SOCAR clarifies issue of possible gas import from Russia

Azerbaijan has sufficient volumes of gas to fully meet the domestic demand and provide the sphere of industry, power plants and consumers in the Nakhchivan Autonomous Republic as well, Nizameddin Guliyev, spokesperson of the State Oil Company of Azerbaijan (SOCAR) said.

He was commenting on the information earlier spread by some media outlets about the alleged gas shortage in Azerbaijan and its possible import from Russia.

Guliyev said that this information is not true.

Aside from delivering gas to the domestic market, Azerbaijan continues the gas export in accordance with the earlier signed agreements and contracts, according to SOCAR's spokesperson.

Guliyev said that during the meeting of SOCAR President Rovnag Abdullayev with the head of Russia's Gazprom, Alexey Miller at St. Petersburg International Economic Forum, there were no discussions about the gas supply to Azerbaijan for meeting the country's domestic demand.

He added that SOCAR and Gazprom have good long-term partnership relations.

"The Russian side took an interest in SOCAR's position on gas supplies to the methanol plant under Azerbaijani AzMeCo company during a meeting between Abdullayev and Miller," Guliyev said. "Taking into account that this is the Azerbaijani company, Abdullayev expressed his positive attitude on this issue and even voiced readiness to deliver the company's infrastructure for gas supplies from Russia to this plant."

The Azerbaijani gas is not supplied to this enterprise.

While responding to this question, Guliyev said that the entire volume of gas that is being produced and will be produced in Azerbaijan in the coming years, has been distributed and contracted for many years ahead.

AzMeCo is a private company. While conducting the design and construction work, the owners should have determined in advance a source of purchasing the raw materials. But this was not done.

"Perhaps, the owners of the company addressed Gazprom with a request to supply gas for methanol production," Guliyev said.