Agreements between Azerbaijan and Turkey to help open South Gas corridor?

Agreements between Azerbaijan and Turkey to help open South Gas corridor?

Azerbaijan and Turkey signed a number of export agreements.

On 25 October, Azerbaijan and Turkey signed a number of export agreements that allow Turkey to buy gas from Azerbaijan and transport it through neighboring countries to Europe.

According to a statement posted on the official website of the State Oil Company of Azerbaijan (SOCAR),  the signed package of documents includes:

– An intergovernmental agreement between the governments of Azerbaijan and Turkey;
– An agreement to sell natural gas between SOCAR and Botas International Ltd (BIL);
– A gas supply agreement between the Azerbaijani company (AKPG) and Botas;
– An agreement on gas transit between SOCAR and Botas;
– Framework Agreement stipulating the terms and conditions of transit of Azerbaijani gas through Turkey.
According to the IGU and FA the transit of gas via Turkey can be achieved through the existing pipeline system Botas (subject tomodernization) or by building a new gas pipe.

The signing ceremony was attended by Azerbaijan’s President Ilham Aliyev and Turkish Prime Minister Recep Tayyip Erdogan.

The documents were signed by the Minister of Industry and Energy of Azerbaijan Natig Aliyev and Minister of Energy and Natural Resources of Turkey Taner Yildiz and SOCAR president Rovnag Abdullaev, regional president of BP Azerbaijan, Georgia and Turkey, the operator of Shah Deniz” Rashid Javanshir and CEO Director of Botas Fazil Shenel.

“Agreements provide a legal framework for managing the sale of gas from Shah Deniz to Turkey and its transportation to European markets via Turkey”, SOCAR reports.

“We are pleased to complete the signing of important agreements between Azerbaijan and Turkey, which will give rise to full-scale development of Shah Deniz and, the supply of gas produced in the second stage of this giant field in Azerbaijan on the Caspian Sea to Turkey and to European markets”, Rovnag Abdullayev said “This is an important step that has been achieved by the two governments with the support of all stakeholders, including the Shah Deniz consortium. We believe that this success lies in the close partnership between the three main parties – the government of Azerbaijan, the Turkish government and Shah Deniz consortium. This partnership is a key element of what has been done so far, and will remain the driving force that will allow safe and reliable supply of Azerbaijani gas to Turkey and Europe.”

Speaking on behalf of the consortium, regional president of BP Rashid Javanshir said:

“We welcome the successful signing of agreements for the sale and transit of gas from Shah-Deniz, as well as the intergovernmental agreement between Azerbaijan and Turkey, and we believe that they will help to open  South gas corridor Europe, linking Azerbaijan and Turkey with another strategic partnership. In addition, the agreements will support the further development of the project Shah Deniz-2 in the direction of the final investment decision and the development of Turkey as an energy hub for Europe. The signing of these agreements will allow Shah Deniz to continue the selection process of the European route of the pipeline and to confirm the agreement of sale with potential buyers. On behalf of the partners we congratulate Azerbaijan and Turkey, with the signing of these critical agreements.”

News.az

 

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