Turkiye's Petroleum Pipeline Corporation (BOTAS) will deliver up to 1.7 billion cubic meters (bcm) of natural gas that will run until Dec. 31, 2024 to SOCAR Turkey Petrokimya AS (STPAS), according to a contract that will be concluded between parties.
Under the memorandum of understanding signed between the Ministry of Energy and Natural Resources of the Republic of Turkey and the Ministry of Energy of the Republic of Azerbaijan on Dec. 22 and published in Turkiye’s Official Gazette, BOTAS will deliver natural gas to STPAS to cover the needs of the group companies of SOCAR Turkey Enerji AS.
The price of the gas volumes that BOTAS 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 BOTAS in Turkiye, and all applicable taxes.
BOTAS and STPAS will conclude annual contract covering the delivery quantities, taking into consideration the take or pay obligations of BOTAS.
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.
By Nuran Erkul Kaya
Anadolu Agency
enerji@aa.com.tr