SOCAR, Gazprom negotiate to determine gas price for 2011

The State Oil Company of Azerbaijan Republic (SOCAR) and Russia's gas monopoly company Gazprom negotiate to determine the cost of gas for 2011, Russian Trade Representative in Azerbaijan Yuri Shedrin said at today's news conference.

The gas price for 2011 is still not agreed upon, but the parties continue negotiations, Shedrin said. Gazprom and SOCAR have agreed upon volumes of Azerbaijani gas to be exported to Russia in 2011. In 2010, this figure would be about two billion cubic meters. Shedrin said that Azerbaijan's gas reserves will be sufficient for export of two billion cubic meters of gas to Russia.

The medium-term contract on purchase-sale of Azerbaijani gas to Russia (with the possibility of extension) was signed between SOCAR and Gazprom in Baku Oct. 14. It covers 2010-2014. Under the contract, the Azerbaijani side will annually supply gas amounting to no less than 500 million cubic meters to Russia. The contract did not specify a limit to the gas supply volume. SOCAR will notify the opposite side of the amount which the company can deliver for the next six months.

Azerbaijan launched gas supplies to Russia Jan.1, 2010. According to SOCAR, the company exported more than 494.6 million cubic meters of gas to Russia in January-July under the mid-term contract. In July, Russia was delivered more than 66.4 million cubic meters compared to 81.54 million cubic meters in June.


/Trend/