SOCAR: First supply of Turkmen gas to Azerbaijan under swap deal expected today or tomorrow

As part of the trilateral agreement on trade in natural gas between Turkmenistan, Azerbaijan and Iran, Turkmen gas will come to Azerbaijan today or tomorrow (January 5), Ibrahim Ahmadov, deputy head of the SOCAR Public Relations and Event Management Department, told Report.

“The supply of Turkmen gas to Iran began on January 1. From today or tomorrow, Turkmen gas will be delivered to the territory of Azerbaijan. Thus, the implementation of the agreement providing for the transportation of Turkmen gas through Iran has begun,” Ahmadov said.

He noted that gas supplies from Iran to Azerbaijan’s Nakhchivan also continue: “Within the swap agreement, the volumes of gas supplies are somewhat higher, which means not only to Nakhchivan but through the territory of Iran, gas will also be supplied to the main territory of Azerbaijan. The Iranian delegation is expected to visit the country today.”

According to the Iranian Ministry of Petroleum, as part of an agreement on gas swap with a volume of up to 2 billion cubic meters per year, at the first stage, Azerbaijan will receive up to 4 million cubic meters of natural gas per day, and this volume will gradually increase.

“Under the swap deal, the National Iranian Oil Company will receive gas from Turkmenistan and deliver an equivalent amount to Azerbaijan at the Astara border,” Iran’s Oil Minister Javad Owji said.

Of the total received gas from Turkmenistan about 20 to 30 percent will be the share of Iran as a swap fee and the rest will be delivered to Azerbaijan.

Azerbaijan will reportedly receive four million cubic meters of new energy supplies per day; however, the figure is currently less than four million and will gradually reach that amount.

The deal, which was backed by the presidents of the three Caspian countries during the 15th Summit of the Economic Cooperation Organization (ECO) in the Turkmen capital city of Ashgabat on November 28, 2021, was signed by the oil ministers of the two countries on November 30, 2021.

Under the swap deal, Iran will receive gas from Turkmenistan and deliver an equivalent amount minus the swap fee to Azerbaijan at the Astara border. The gas that Iran will receive from Turkmenistan under the swap agreement will cater to the needs of the northern provinces of the country.

Iran has major natural gas fields in the south but has imported gas from Turkmenistan since 1997 for distribution in its northern provinces, especially during the winter.

Experts believe that the implementation of this deal could encourage other countries in the region to ink similar deals and to use the Islamic Republic’s capacities in this regard.

Having the largest high-pressure gas pipeline network after Russia, Iran can play a key role in transferring gas from east to west of Iran and to the neighboring countries such as Azerbaijan.

This deal is also a big step for Iran as it would ensure a stable gas supply to the country’s northeastern regions which are far away from the sources of natural gas in the country.

With more than 34 trillion cubic meters of gas reserves (the world’s second-largest holder of gas reserves), Iran is in a region where demand for this valuable and clean fuel is increasing day by day, and Iran can quench the thirsty market in the region, according to Iranian media.