On December 22, Gazexport’s delegation headed by Alexander Medevedev, Gazprom’s Management Committee member and Gazexport’s Director General, paid a visit to the city of Baku (Azerbaijan’s 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. GNCAR’s 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, Gazprom’s joint venture, and Kazmunaigaz, a Kazakh company, are expected to enter into relevant agreements.

Reference:

Azerbaijan’s annual gas demand is 7-8 bcm. Gas share in the country’s fuel and energy balance is estimated at about 45%.

Azerbaijan’s 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% Gazprom’s subsidiary, is the world’s largest natural gas exporter delivering Russian gas to Europe and the CIS countries.

DIVISION OF RELATIONS WITH MASS MEDIA