Supplies of Azerbaijani gas to Dagestan negotiated

The negotiated volume of supplies makes 1.5 bln cubic meters.

According to experts, SOCAR will be ready to supply gas by its average market price, reports Finance-online agency.

Two variants of supplies, including direct sale of gas to Dagestan and swap operations are being considered. The second variant envisions supplies in exchange to the same volume of gas in Europe under the SOCAR label.

For transportation of the crude, it is proposed to use a gas pipeline, earlier pumping Russian gas to Azerbaijan, which requires no reconstruction.

At the same time, Azerbaijani side notes that Gazprom will thus be able to save on transport expenses. "Blue fuel" is sold to Dagestan from Siberia, while Azerbaijan is just 220 kilometers from the republic. SOCAR also supplies gas to Dagestan.

Dagestan's demand is estimated to be 3 bln cubic meters. The country produces 1.5 bln cubic meters and Azerbaijan can supply the same volume.

Veles Kapital analysts suppose that Gazprom will have to accept Azerbaijan's offer. Supplies will be conducted by European prices, transportation costs excluded.

In summer of this year Gazprom started talks on Azerbaijani gas purchase provisions and possible swap exchange operations, offering Azerbaijan to buy crude by market prices on the basis of a long-term agreement, in particular, from Shah Deniz field.

/RIA Dagestan/