BOTAS intends to extend agreement on transportation of Azerbaijani gas to Turkey

  03 November 2017    Read: 622
BOTAS intends to extend agreement on transportation of Azerbaijani gas to Turkey

The 15-year agreement on transportation of Shahdeniz 1 gas to Turkey might be extended.

Head of International Project Department at BOTAS Ismail Kurshad Capanoglu said that the agreement on ACG development was extended by 2050: “Therefore, a new agreement might be signed when the current agreement expired. In fact, we have already started negotiations with SOCAR”.

He noted that operations on TANAP will start in June 2018: “Initial agreement in this regard was reached in 2011”.

According to him, Turkey’s gas consumption makes up approximately 50 billion cubic meters and this figure will increase: “Increase of gas reserves in the country is on the agenda. 10% of consumable gas should be stored as reserves. However, we can increase the reserves up to 20 %. We have not hubs to bring the gas from the East to the West. Therefore, we have to carry out natural gas transportation through reserves”.

He also clarified that why BOTAS does not own a large share in TANAP: “In October 2011 SOCAR consortium and Shahdeniz 2 conducted negotiations. During these negotiations, it was agreed that BOTAS transports the gas. In the article $5 of the agreement, in case if the sides don’t want establishment of new line, meetings will be held in this regard. There was agreement on transportation of gas via BOTAS through Turkey. According to that article, we met with SOCAR and decided to create a new system”.

He noted that Turkey’s relations with Azerbaijan differ from relations with the Western countries: “It was the main goal for Azerbaijan and Turkey to insure that the owner of gas has dominance over transportation. An agreement was signed that Azerbaijan should bear at least 50% of responsibility. This means that Azerbaijan will dominant in transportation. SOCAR’s share in TANAP is high. As for TAP, Azerbaijan has the same share. Because the gas owner’s intention to have dominance over the transport is natural”.

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