On December 22, Gazexportís delegation headed by Alexander Medevedev, Gazpromís Management Committee member and Gazexportís Director General, paid a visit to the city of Baku (Azerbaijanís capital).
In the course of the visit, Gazexport and the State Oil Corporation of the Republic of Azerbaijan (GNCAR) signed a 5-year Russian Gas Supply Agreement effective from 1 January 2004 and valid till 31 December 2008. GNCARís President, Natik Aliev, signed the document on behalf of Azerbaijan.
The Contract provides to annually supply 4 bcm of natural gas to Azerbaijan (2.75 bcm in 2004).
KazRosGaz, Gazpromís joint venture, and Kazmunaigaz, a Kazakh company, are expected to enter into relevant agreements.
Azerbaijanís annual gas demand is 7-8 bcm. Gas share in the countryís fuel and energy balance is estimated at about 45%.
Azerbaijanís annual gas production has lately amounted to 5-6 bcm, with up to 40% of gas produced from the Bakhar field. From 2006 onwards, Azerbaijan plans to increase gas production due to commissioning of the Shakh-Deniz field.
Azerbaijan annually buys up to 4.5 bcm of natural gas, mainly from Central Asia.
Gazexport, a 100% Gazpromís subsidiary, is the worldís largest natural gas exporter delivering Russian gas to Europe and the CIS countries.
DIVISION OF RELATIONS WITH MASS MEDIA