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Botaş to deliver gas to SOCAR Turkey

January 12, 2022
in Markets & Economy
0
Natural gas storages to meet demand in winter: Minister

Turkey’s Petroleum Pipeline Corporation (Botaş) will deliver up to 1.7 billion cubic meters (bcm) of natural gas that will run until Dec. 31, 2024 to SOCAR Turkey Petrokimya, according to a contract that will be concluded between parties.

A memorandum of understanding signed between the Turkish Energy and Natural Resources Ministry and the Ministry of Energy of the Republic of Azerbaijan on Dec. 22,2021, was published in Turkey’s Official Gazette.

The price of the gas volumes that Botaş will include the import price of the existing gas sales and purchase contract (SPA) already in place. Additionally, the import price will cover the transportation tariff and other transportation costs incurred by Botaş in Turkey, and all applicable taxes.

Botaş and Socar Turkey will conclude annual contract covering the delivery quantities, taking into consideration the take or pay obligations of Botaş.

The parties are expected to utilize the full available capacity of the Baku-Tbilisi-Erzurum and Trans Anatolian Natural Gas Pipeline for the transmission of additional natural gas volumes that will be produced and transported from upstream projects in Azerbaijan.

The memorandum of understanding, which is subject to amendments and updates, will take effect on the completion of each country’s respective internal legal procedures.

Hurriyet Daily News

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