SOCAR not in process of renegotiating any off-take contracts, VP says

Without long-term off-take agreements, projects with heavy infrastructure that required financing (CAPEX), wouldn't be able to exist or be developed, SOCAR Vice President Afgan Isayev said in an interview with Euronews, according to Report.

"We can mention the Southern Gas Corridor. We have long-term contracts on gas. And that was instrumental for us to be able to attract the financing. Yes, of course, sometimes, based on the market dynamics, based on the type of projects that you are in, you may be willing to sign the short-term or spot agreements, but at this stage we are not in the process of renegotiating any contracts, off-take contracts," he said.

Asked about the risks of oil and gas demand peaking earlier than expected and the potential risk of underutilized company assets, the vice president noted that SOCAR agrees with OPEC"s forecasts, which do not anticipate such a scenario before 2050.

"We have infrastructure in place, pipelines, for example. We have the Southern Gas Corridor pipeline stretching from here until Italy. We have the Baku-Tbilisi-Ceyhan pipeline from here to the Mediterranear Sea. And we started to collaborate with very interesting partners, innovators. For example, we're looking at low carbon fuels, bio methane generation, for example. Number two, we're looking at sustainable aviation fuels. Number three, we're looking at synthetic methane. In addition to that, let's look at out petrochemical production. Whatever you touch has a hydrocarbon in it. That is why we are more than confident that demand for petrochemicals will not subside," the company official said.