Gazexport and GNCAR signed Agreement to supply gas to the Republic of Azerbaijan
On December 22, Gazexport’s delegation headed by Alexander Medevedev, Gazprom’s Management Committee member and Gazexport’s Director General, paid a visit to the city of Baku (Azerbaijan’s capital).
In the course of the visit, Gazexport and the State Oil Corporation of the Republic of Azerbaijan (GNCAR) signed a 5-year Russian Gas Supply Agreement effective from 1 January 2004 and valid till 31 December 2008. GNCAR’s President, Natik Aliev, signed the document on behalf of Azerbaijan.
The Contract provides to annually supply 4 bcm of natural gas to Azerbaijan (2.75 bcm in 2004).
KazRosGaz, Gazprom’s joint venture, and Kazmunaigaz, a Kazakh company, are expected to enter into relevant agreements.
Azerbaijan’s annual gas demand is 7–8 bcm. Gas share in the country’s fuel and energy balance is estimated at about 45%.
Azerbaijan’s annual gas production has lately amounted to 5–6 bcm, with up to 40% of gas produced from the Bakhar field. From 2006 onwards, Azerbaijan plans to increase gas production due to commissioning of the Shakh-Deniz field.
Azerbaijan annually buys up to 4.5 bcm of natural gas, mainly from Central Asia.
Gazexport, a 100% Gazprom’s subsidiary, is the world’s largest natural gas exporter delivering Russian gas to Europe and the CIS countries.
Information Directorate, OAO Gazprom