Azerbaijan reportedly more than doubles gas price for Turkey

Wed 16 June 2010 09:53 GMT | 14:53 Local Time

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Turkey has agreed to a higher price for gas from Azerbaijan as part of Stage 1 of the development of the Shah Deniz gas condensate field.

According to Turkish newspaper Sabah, the price per 1,000 cubic metres of gas has risen from $120 to $300.

'The price for gas from the Shah Deniz -2 project will be even higher due to growing investments,' Sabah says.

Turkey is to buy 6-7 million cu.m of gas per year from Shah Deniz-2. Part of this gas will be for domestic consumption and part for Turkey's Petkim refinery, owned by Azerbaijan's state oil company, SOCAR.

Meanwhile, Azerbaijan will pay a fee of $45 for the transit of its gas via Turkey.

'Turkey will receive $300m from the transit of Azerbaijani gas,' Sabah calculates.

The newspaper commented that Turkey and Azerbaijan had found it difficult to reach agreement on gas prices following the signing of the Turkish-Armenian protocols on rapprochement in October 2009. However, 'Turkey’s firm stance on the Karabakh problem persuaded the Azerbaijani side and Azerbaijan agreed to sign the gas deal'.

Turkey and Azerbaijan signed the long-awaited agreement on supplies of natural gas in Istanbul on 7 June. The agreement was signed by Azerbaijan's minister of industry and energy, Natig Aliyev, and Turkish minister of energy and natural resources, Taner Yildiz.

Turkish Energy Minister Taner Yildiz said that Azerbaijani gas from Shah Deniz might be transported via the planned Nabucco and Turkey-Greece-Italy (TGI) pipelines.


Sabah1news.az

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