BAKU

Azerbaijan and Russia have started natural gas swaps under a contract which runs through 2023.

The contract was signed by the Azerkontrakt state-owned company and the Gazprom group and provides for the supply of gas from Azerbaijan to Russia in the summer season, and similar volumes of gas from Russia to Azerbaijan in the winter season. The volume of supplies will depend on the level of gas production and consumption in Azerbaijan in the summer months.

This information was disseminated on the evening of July 27 by Azerkontrakt, which since December 28, 2020, by the decision of the head of the Azerbaijani government, acts as an intermediary between gas producing and gas distribution companies and energy producers and is responsible for wholesale gas purchases (previously it was under the jurisdiction of SOCAR).

“The technical implementation of the agreement on receiving and sending the corresponding volumes of gas from the Azerbaijani side will be carried out by SOCAR,” the information says without specifying other details.

SOCAR declined to clarify details.

According to Azerkontrakt, this agreement will allow the parties to make optimal use of their oil and gas infrastructure, and against the background of the rapid growth of gas production in the country, Azerbaijan is able to create additional volumes of its own gas by winter, when the level of domestic consumption increases significantly, ”the company said.