SOCAR-TURCAS receives license to sell gas in Turkey

The Joint Petrochemical Company SOCAR-TURCAS has received a license for the wholesale of gas on the domestic market of Turkey, Trend reports.

The license was granted for a period of 30 years by the regulatory group of the Turkish energy market.

An agreement was signed earlier by Turkey for the acquisition and subsequent sale of gas amounting to 1.2 billion cubic meters per year to Turkey. Most of the gas will flow to the petrochemical complex
Petkim, in which SOCAR has equity participation, while the remainder will be sold to consumers on the domestic market of Turkey.

Based on the memorandum of understanding signed between the Azerbaijani Industry and Energy Ministry and the Turkish Energy and Mineral Resources Ministry, an affiliate of SOCAR will receive 1.2
billion cubic meters of gas annually out of a total 6.6 billion cubic meters from Botas, contracted for Turkey in the first stage of development of the Azerbaijani gas field, Shah Deniz. Botas will transport gas to SOCAR by late 2016.

The price of gas for a volume of 1.2 billion cubic meters will consist of the cost of imported gas, the cost of transportation within the country and other tax duties.