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Baku Energy Forum - Azerbaijan, Iran hold discussions on development of co-op in oil-gas sector

Azerbaijan, Iran hold discussions on development of co-op in oil-gas sector

08.12.2021

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Azerbaijan and Iran have held discussions on bilateral relations, as well as development of cooperation in energy, especially in the oil and gas sector, Trend reports citing Shana News Agency.

On December 8, 2021, a meeting was held between Iranian Oil Minister Javad Owji and a delegation led by CEO of the State Oil Company of Azerbaijan Republic (SOCAR) Rovnag Abdullayev in Tehran.

During the meeting, the sides discussed bilateral relations, development of cooperation in the gas field. Also, discussions on strengthening of energy cooperation in the Caspian Sea were held.

Among the important topic of discussions was the tripartite contract on gas swap between Iran, Azerbaijan and Turkmenistan, and the preparations for its implementation.

Iran’s north and north-east provinces are located at the end of Iran's gas network, where gas pressure drops down, thus increasing consumption there during cold months. The contract between Turkmenistan, Iran and Azerbaijan can prevent a drop in gas pressure these regions of Iran. Due to low gas pressure, the mentioned alternative way is the best option for Iran to supply gas to the mentioned regions.

On November 28, 2021, a tripartite contract on the swapping of 1.5-2 billion cubic meters of Turkmen gas to Azerbaijan through Iran per year was signed between Iran and Azerbaijan in Ashgabat, Turkmenistan, on the sidelines of the 15th Summit of the Economic Cooperation Organization (ECO). According to the contract, daily 5-6 million cubic meters of gas will be swapped.