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MOSCOW, Oct 14 (Reuters) - Azerbaijan has signed a new deal
with Turkey to supply gas from its giant offshore Shah Deniz I
field, Azerbaijan's energy minister Parviz Shahbazov told
Reuters on Thursday.
Azerbaijan halted gas supplies from Shah Deniz I to Turkey
in April after the contract expired.
Shahbazov said Shah Deniz I will supply 2.5 billion cubic
metres (bcm) to Turkey next year when Azerbaijan's total gas
production is seen increasing to 43 bcm. It will supply 3.5 bcm
in 2023, the minister said, without providing further details.
"We will be increasing gas supplies (to Turkey) from Shah
Deniz I in addition to Shah Deniz II," he said on the sidelines
of an energy conference in Moscow.
Turkey's record demand for natural gas this year is forcing
it to step up purchases on a surging spot market as it scrambles
to renew long-term contracts expiring this winter.
Turkey had four long-term import contracts in total
expiring this year totalling 16 bcm of annual supply.
Two industry sources told Reuters earlier this week that
Turkey has renewed one of them, with Azerbaijan, agreeing a
three-year contract to import up to 6 bcm per year, following
the expiry of a 15-year contract for 6.6 bcm.
Supplies from Shah Deniz II in the Caspian Sea, which is due
to supply Turkey with 6 bcm per year, have not been interrupted.
BP operates Shah Deniz on behalf of its partners in
the Shah Deniz Production Sharing Agreement (PSA).
(Reporting by Vladimir Soldatkin and Olesya Astakhova in
Moscow; additional reporting by Nailia Bagirova in Baku; editing
by Jason Neely)
