CESD Statement Approved; Azerbaijan doubled gas export to Russia

CESD Statement Approved; Azerbaijan doubled gas export to Russia

Center for Economic and Social Development (CESD) reported in September, 2011 that gas export from Azerbaijan to Russia would be doubled early 2012. CESD received information from its sources in Azerbaijan Government about secret gas negations between two countries. That time CESD statement was broadly addressed by different mass-media institutes as well as international organizations (Statement is available in Russian at http://www.cesd.az/ru157.htm or http://www.echo-az.com/index.php?aid=1148).

Finally, Russian state-controlled gas company Gazprom confirmed that it has signed a deal to double its gas imports from Azerbaijan. The agreement was signed on Monday in the Russian ski resort of Krasnaya Polyana by Gazprom chief executive Aleksei Miller and the head of Azerbaijan’s state-owned energy company Socar, Rovnag Abdullayev.

Gazprom said the volume of gas purchases from Azerbaijan will grow from 1.5 billion to 3 billion cubic meters this year, and will rise further in 2013. “We are doubling the purchase of Azerbaijani gas for the second year running,” Miller said. “The Azerbaijani-Russian energy partnership is developing at a good pace. This reflects the mutual desire to further increase the volumes of hydrocarbon supplies. The lack of the ‘ceiling’ of the volume of gas purchases, geographical proximity, the presence of well-established gas pipeline infrastructure, excluding transit zones, allow Azerbaijan to export natural gas to Russia more economically.”

The Gazprom CEO also said cooperation with Russia was more profitable for Azerbaijan than supplies to Europe.

“We can offer a suitable price and our price is more commercially viable than the prices of European consumers,” Miller added.

Socar President Abdullayev told the Baku-based ANS TV channel that the agreement with Gazprom was signed “on very beneficial terms”.  The Russian firm announced last week it would start construction of the South Stream natural-gas pipeline in December 2012, instead of 2013, to eventually provide up to 63 billion cubic meters of gas annually to southeastern Europe.
TAGS: Russia, gas company, Gazprom, gas imports, Azerbaijan, Krasnaya Polyana, Gazprom, Aleksei Miller, Rovnag Abdullayev


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