Azerbaijan to increase gas output by 11%

SOCAR Officer Najaf Najafov told APA that a gas production program has been devised which envisages supplying the domestic demand for natural gas on the countries own potential in case Russia cuts gas supplies.

Azerbaijan will produce 4.5bn cu m of gas for 2006 while the production is planned to hit 5bn cu m next year because of start of ten wells in Guneshli, 8 March and Bahar fields.

Pipe-lay and installations project will also be implemented connecting Guneshli Field to Oil Rocks.

Under an agreement signed in December 2003, Azerbaijan will receive 4.5 billion cu m of gas from Gasprom at a price of $110 per 1,000 cu m in 2006.

As of October, Azerbaijan has received approximately 3.6m cu m of gas (12.1m cu m per day). Daily gas imports will rise to 13.6m cu m in December because of winter.

Since November, 2000 during six years Russia has supplied 24 910.8m cu m of gas for Azerbaijan.

Azerbaijan and Russia will fix the date of the next round of talks between Azerbaijan and Gazexport, the Russian Gazprom's arm, on setting the volume and price for Russian gas supplies to the Caspian country in 2007.

But, Russia said it would reduce gas imports to this country from next year.