Bank Of Baku

Azerbaijan, Turkey haggle over gas flow to Turkey in Baku

Azerbaijan, Turkey haggle over gas flow to Turkey in Baku
# 06 May 2009 13:47 (UTC +04:00)
Baku. Rashad Suleymanov - APA-Economics. State Oil Company of Azerbaijan (SOCAR) and Turkey’s BOTAS are holding discussion in Baku to agree on the price and volume of Azeri gas exports to Turkey this week.

Expert working groups are discussing the volume and price of gas to be delivered to Turkey Phase 2 of Shah Deniz, as well as the transit of Azeri gas through Turkey, said SOCAR.

Meanwhile, Turkish media quoted BOTAS Director General Saltuk Duzyol as saying the parties will conclude a new agreement defining the price of natural gas and the transit of Azeri gas through Turkey.

“The parties have a common view. I am sure that issue will be solved by taking into account the interests of Turkey and Azerbaijan,” he added.

Turkish Minister of Energy and Natural Resources Taner Yildiz said there is a agreement reached to increase the supply of Azeri gas to Turkey.

Azerbaijan is charges Turkey $120 per 1 000 cubic meters.

The stalemate over the transit deal is partly due to the fact that Turkey has been holding out on a demand for the right to offtake some 15% of transit gas flowing from Phase 2 of Shah Deniz, putting the country at odds with other pipeline consortium members.
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