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Wednesday, May 20, 2009

AZERBAIJAN: BAKU MAY DOUBLE GAS PRICE FOR TURKEY
5/20/09

Turkish and Azerbaijani media outlets on May 20 reported that
Azerbaijan is prepared to double the price it charges Turkey for
natural gas.

Both Turkey’s Haber7 newspaper and Azerbaijan’s APA news service
reported that the new fee will be in the $200-$250 range per thousand
cubic meters (tcm). That could potentially double the $120/tcm
currently paid by Turkey, which at present is the largest foreign
purchaser of Azerbaijani gas. There has been no official confirmation
of the hike.

During May 13 talks in Baku with Azerbaijani President Ilham Aliyev,
Turkish Prime Minister Tayyip Recep Erdogan offered to purchase
greater volumes of Azerbaijani gas, tossing into the bargain Ankara’s
unwavering support for Azerbaijan’s claim to the disputed
Nagorno-Karabkah territory. Nevertheless, Aliyev said that a price
hike was inevitable.