Bp14 Oct 2021 17:59
MOSCOW, Oct 14 (Reuters) - Azerbaijan has signed a new dealwith Turkey to supply gas from its giant offshore Shah Deniz Ifield, Azerbaijan's energy minister Parviz Shahbazov toldReuters on Thursday.Azerbaijan halted gas supplies from Shah Deniz I to Turkeyin April after the contract expired.Shahbazov said Shah Deniz I will supply 2.5 billion cubicmetres (bcm) to Turkey next year when Azerbaijan's total gasproduction is seen increasing to 43 bcm. It will supply 3.5 bcmin 2023, the minister said, without providing further details."We will be increasing gas supplies (to Turkey) from ShahDeniz I in addition to Shah Deniz II," he said on the sidelinesof an energy conference in Moscow.Turkey's record demand for natural gas this year is forcingit to step up purchases on a surging spot market as it scramblesto renew long-term contracts expiring this winter.Turkey had four long-term import contracts in totalexpiring this year totalling 16 bcm of annual supply.Two industry sources told Reuters earlier this week thatTurkey has renewed one of them, with Azerbaijan, agreeing athree-year contract to import up to 6 bcm per year, followingthe expiry of a 15-year contract for 6.6 bcm.Supplies from Shah Deniz II in the Caspian Sea, which is dueto supply Turkey with 6 bcm per year, have not been interrupted.BP operates Shah Deniz on behalf of its partners inthe Shah Deniz Production Sharing Agreement (PSA).(Reporting by Vladimir Soldatkin and Olesya Astakhova inMoscow; additional reporting by Nailia Bagirova in Baku; editingby Jason Neely)
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