Baku refutes Iranian Ambassador's statement on gas swap from Russia to Iran through Azerbaijan

Baku/22.09.22/Turan:  A swap operation based  on  an agreement between the Russian Federation, Azerbaijan and Iran will begin in the near future regarding the transfer  of  9 million cubic meters  (mcm)of gas  per day  from Russia to Iran through the territory of Azerbaijan, Iranian Ambassador to Azerbaijan Seyyed Abbas Mousavi said. Earlier, the Iranian agency "Fars" made such information. The Iranian diplomat recalled that Iran is conducting a similar operation with Turkmenistan and Azerbaijan during 2022.

In a conversation with Turan, three well-informed sources in the gas market of Azerbaijan denied the information about the alleged swap of Russian gas.

“The information is based on the interests of Iran, it is at variance with reality. Firstly, the Russian Federation is unlikely to think about such a transit of its gas now; secondly, our gas transmission system in the direction of Iran (through the hub in Astara) is designed only for operations in the amount of no more than 2.5 mcm per day, and at present these communications are occupied by Turkmen gas, which we receive through swap operations from Iran. Any kind of reverse is impossible and not provided for,” sources in SOCAR told Turan.

An expert from the Ministry of Energy of Azerbaijan recalled that, according to the agreement reached on November 28, 2021 between the leaders of Azerbaijan, Turkmenistan and Iran, Azerbaijan will receive about 1.5 bcm of gas from Turkmenistan in 2022 as part of a swap exchange.

At the same time, since January 2022, Turkmenistan has been running out of 5-6 mcm gas per day to Iran through the gas pipeline, of which 4 mcm per day are intended for Azerbaijan, the rest for Iran (for its five northern provinces as an alternative source).

In Azerbaijan, Turkmen gas is primarily addressed to the Nakhchivan Autonomous Republic (NAR), which passes it through the Iranian point of Julfa.

But Azerbaijan receives the bulk of the gas swap through Astara and uses it for its urgent needs as part of the distribution of the country's fuel and energy balance.

In summer, representatives of the Iranian Energy Ministry said that the volume of swap gas supplies from Turkmenistan to Azerbaijan in 2023 could double and even triple.

“Until September 24, we had to clarify the issue of gas supplies from Turkmenistan to Azerbaijan through Iran for 2023. However, the negotiations are dragging on,” a source close to the consultation process told Turan.

According to him, it is not possible to carry out the necessary work to increase the capacity of the gas compressor station in Astara (on the border with Iran) becasue of the absbece of clarity. “Now there are no negotiations. But the negotiation process will continue,” the expert said.

It ought to be noted that the implementation of the agreement between Iran, Azerbaijan and Turkmenistan allows Azerbaijan to balance with its gas distribution operations in the domestic and foreign markets in order to “have on hand” certain daily reserve volumes of “blue fuel” if necessary.

Of the production expected by Azerbaijan in 2022 , only about 30-32 bcm of about 44-45 bcm of gas, are commercial gas, that is, gas for all types of consumers.

At the same time, over 20 bcm are intended for export, the rest of the gas is for the internal needs of Azerbaijan (for industrial facilities, for utilities, etc.).-0-