Reduction of Azerbaijani gas for Greece impossible, says SOCAR

At present we cannot reduce Azerbaijani gas price for Greece, which will be purchased and exported to the country via the trans-Adriatic gas pipeline (TAP), Elshad Nasirov, Vice President of State Oil Company of Azerbaijan (SOCAR),  for Investments and Marketing, told journalists.

He said that first of all such a reduction of prices does not correspond to the international practice.

“If the contract was concluded by 25 years, then it envisages change of gas prices, in case if the market situation changes. But this happens only as soon as gas starts coming in. Right now Greece does not receive any gas, so there is no use to talk about changes,” he said.

Nasirov also added that reduction of purchasing prices depends neither on the Greek, nor on the Azeri side.

“The price in the contract has been approved by the Greek company and the consortium of all the companies, which have conducted talks on gas deliveries to Greece. The mechanism has been worked out and signed between the Greek company and the so-called export negotiation group. When the contract has been signed, the group ceased to exist, because the talks have been completed,” he explained.

Speaking about Greece’s demands to raise fees of Azerbaijani gas transit through its territory, SOCAR’s representative said this issue must be solved by the EU.

Panayotis Lafazanis, Greek Minister of Production, Environment and Energy, said that the Greek government supports TAP construction, but considers the profit the country could derive from transit of natural gas through its territory insufficient.

According to Turan, there is no fixed price of Azerbaijani gas, which will be exported from the Shah Deniz-2 via TAP, for Greece. There is a special formula of gas price formation, a source from BP-Azerbaijan told Turan. The prices will be corrected every quarter on the basis of this formula.—0—