Azernews.Az

By Aynur Jafarova

Azerbaijan is ready to supply Turkey with energy resources at affordable prices, local Turkish media quoted Azerbaijani Energy Minister as saying on February 8.

Natig Aliyev noted that Azerbaijan and Turkey are bound by major economic projects that will be implemented in the future.

Azerbaijan currently possesses gas reserves of about three trillion cubic meters.

"Azerbaijan is developing and strengthening its economy, and the country's products are expected to go to European markets," Aliyev said. "Under the contract, Azerbaijan will annually export 6.6 billion cubic meters of gas to Turkey."

The Turkish state pipeline company Botas imported 38.42 billion cubic meters of gas from various sources in 2013, while the figure was 43.09 billion cubic meters in 2012.

Gas prices are not officially disclosed, but local Turkish media have reported that Turkey pays $490 per 1,000 cubic meters of Iranian gas, $425 for Russian gas, and $335 for Azerbaijani gas, which is supplied via the South Caucasus Pipeline (the Baku-Tbilisi-Erzurum pipeline).

The South Caucasus Pipeline transports gas produced from the Shah Deniz gas condensate field located in the Azerbaijani sector of the Caspian Sea. The gas is supplied to Georgia and Turkey.

Azerbaijani State Statistics Committee reported that the South Caucasus Pipeline transported 4.7 billion cubic meters of gas in 2013, compared to four billion cubic meters in 2012.

Azerbaijan and Turkey are connected by several important regional economic projects, including the Baku-Supsa, Baku-Tbilisi-Ceyhan oil pipelines, Baku-Tbilisi-Erzurum gas pipeline, Trans-Anatolian gas pipeline (TANAP), and Baku-Tbilisi-Kars railway.

Economic relations and bilateral cooperation between Azerbaijan and Turkey have reached a high level, and trade turnover between the two countries amounted to $1.8 billion in the first eleven months of 2013.

The number of companies with Azerbaijani capital in Turkey reached 1,100 at the end of 2012. Mutual investments between Azerbaijan and Turkey exceed $10 billion, and the amount of Azerbaijani investments in Turkey in the coming years is estimated at $21 billion.

Azerbaijan's state energy company SOCAR is one of the world's most well-established oil companies, active in Turkey since May 30, 2008. SOCAR is involved in a number of major investment projects in Turkey, including the construction of TANAP and the Star refinery.