Azerbaijan slightly reduces gas exports to Turkey

Azerbaijan exported 877.74 million cubic meters of gas from the Shah Deniz field to Turkey in January 2024, which is 0.47% lower than in January last year.

Interfax-Azerbaijan reports, citing the data of the Turkish Energy Market Regulatory Council (EPDK).

Thus, in January 2024, Azerbaijan accounted for 13.5% of all gas supplies to Turkey.

Overall, in January, Azerbaijan ranked third in terms of gas supplies to Turkey. Russia leads the list with 41.1 per cent of all supplies, followed by the United States (16 per cent) and Iran (13.4 per cent) in fourth place.

Overall, in January, gas exports to Turkey totaled 6.51bn cubic meters (up 7.8% compared to January 2023 - IF). At the same time, pipeline gas accounted for 4.43bn cubic metres (67.96% of all supplies, up 37.73%), and LNG – 2.89bn cubic meters (32.04% of all supplies, down 26.22%).

In total, supplies were made from 7 countries (Azerbaijan, Russia, Iran - by pipelines, USA, Algeria, France, Cameroon, and RF - by LNG).

As reported, according to EPDK data Azerbaijan exported 10 billion 257.22 million cubic metres of gas from Shah Deniz field to Turkey in 2023 (+ 17.8% of 2022 figure).

The gas supplied to Turkey is Azerbaijani gas produced within Stage-1 and Stage-2 of the Shah Deniz field development.

As previously reported, Azerbaijan and Turkey signed a new agreement on the purchase and sale of gas from Stage 1- 11 bcm of natural gas through the Baku-Tbilisi-Erzurum pipeline in the third quarter of 2021. The agreement provides for annual deliveries of 3.7 bcm of gas from Shah Deniz Stage-1 until the end of 2024 (fourth quarter of 2021 - 2024). Deliveries under the agreement commenced on 1 October 2021.

The Shah Deniz field development contract was signed in Baku on June 4, 1996, and ratified by the Milli Majlis on 17 October of the same year. The parties' shareholdings in the contract are as follows: BP (operator, 29.99%), Canub Qaz Dahlizi (21.02%), LUKOIL (19.99%), NICO (10%), TPAO (19%).