Mon 16 November 2009 | 03:22 GMT Text size:

Azerbaijan and Bulgaria are to work together on oil and gas transportation and a range of other projects following last week's visit to Bulgaria by an Azeri delegation, led by President Ilham Aliyev.

A memorandum on cooperation signed by Azerbaijan's Ministry of Industry and Energy and Bulgaria's Ministry of Economy, Energy and Tourism provides for cooperation on the supply of compressed gas to Bulgaria and the Southern Corridor Project to supply energy to Europe, Azerbaijan’s Minister of Industry and Energy Natig Aliyev told a press conference in Baku on Saturday.

The memorandum specifies areas in which the ministries of the two countries will cooperate and support the State Oil Company of the Azerbaijan Republic (SOCAR) and the Bulgarian company Bulgargaz in the supply of Azeri gas to Bulgaria. 

He said that the memorandum on cooperation signed with Bulgaria contains articles on collaboration between the ministries in the non-oil sector as well.

Compressed natural gas

Natig Aliyev said that the memorandum includes plans to deliver compressed natural gas to Bulgaria by tanker across the Black Sea.

"Natural gas will be transported by tankers to the port of Varna in Bulgaria. Azerbaijan hasn’t carried out such transportation before. This is a new direction for us. Both sides will set up working groups, conduct research and analysis. Some related projects and proposals have already been submitted to the Ministry of Industry and Energy of Azerbaijan and SOCAR,” the minister said.

He said that the project will cost US $2 billion.

Nabucco

Aliyev said that Azerbaijan is ready to work with EU countries, not only on the Southern Corridor and Nabucco pipelines, but in all areas.

Nabucco is the most important project for the European Union and the issue of financing is under discussion now,  Aliyev said. 

He said that if the project goes through, Azerbaijani gas will be transported from Greece to Bulgaria and onto other European countries including Germany.

"For this, it is possible to build a 90-kilometre gas pipeline from Greece to Bulgaria. All this must be analysed and evaluated. One of the main goals is to obtain a net profit with less transportation costs,” Aliyev told the press conference.

Gas prices

Speaking about the sale of Azeri gas to Turkey, Russia and Iran, Natig Aliyev said that the parties are in negotiations. 

"Every country wants to sell its gas at a high price. We also want to sell our gas at a high price. All the neighbours try to buy gas at current prices but we intend to sell the gas at high prices,” the minister said.

APA