Monday, 31 May 2004

AZERBAIJAN, IRAN AGREE ON GAS SUPPLIES

Published in News Digest

By empty (5/31/2004 issue of the CACI Analyst)

Azerbaijan and Iran have reached agreement on supplies of Iranian natural gas to Nakhichevan autonomous republic, Azerbaijani Economic Development Minister Farhad Aliyev told journalists on Friday. \"We have reached an agreement. In place of the gas we will supply them with electricity.
Azerbaijan and Iran have reached agreement on supplies of Iranian natural gas to Nakhichevan autonomous republic, Azerbaijani Economic Development Minister Farhad Aliyev told journalists on Friday. \"We have reached an agreement. In place of the gas we will supply them with electricity. The negotiation process is already drawing to a close and an agreement will be signed soon,\" Aliyev said. The proposed volume of gas imports from Iran is 350 million cubic meters per year. Azerbaijan proposes two schemes to pay for the gas - either with Azerbaijani electricity, or gas - but starting in 2006-2007 when the Shah Deniz field is launched. The Iranian side initially insisted on cash payment for the gas. To supply gas from Iran to Nakhichevan it will be necessary to build a gas pipeline and reconstruct the gas system in the autonomous republic. This work is estimated at $15-$20 million. Nakhichevan autonomous republic does not have direct road links with the main part of Azerbaijan and the main links are by air. Electricity is supplied to the republic from Iran and Turkey. (Interfax)
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The Central Asia-Caucasus Analyst is a biweekly publication of the Central Asia-Caucasus Institute & Silk Road Studies Program, a Joint Transatlantic Research and Policy Center affiliated with the American Foreign Policy Council, Washington DC., and the Institute for Security and Development Policy, Stockholm. For 15 years, the Analyst has brought cutting edge analysis of the region geared toward a practitioner audience.

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