OREANDA-NEWS. October 1, 2009. Production association of the State Oil Company of Azerbaijan (SOCAR) has launched work to ensure realization of an arrangement between SOCAR and Russian gas monopoly Gazprom on Azeri gas export to Russia.

At today’s news conference Azeriqaz deputy director Nazim Samedzadeh said that preparatory work on gas supplies to Russia is underway.

“We hope to finish it until 1 January 2010 and begin supplying 1.5 million cu m of gas a day to the Russian market as arranged,” Samedzadeh said.

This October SOCAR and Gazprom plan to sign a commercial contract for Azeri gas export to Russia to be based on the agreement on main principles of the contract signed in Baku this summer.

Presently SOCAR is conducting repairs in its section of northern export gas pipeline, which are connected with reverser of the pipeline, reconstruction of check point and replacement of small section of the pipeline. Consultations concerning issue of organization of activity of check point have been conducted recently with Gazprom.

Earlier it was informed that Azerbaijan would export gas to Russia at price of \\$350 for 1,000 cu m.

Available pipeline capacity enables exporting 5 bn cu m of gas per year, but export volumes are coordinated on level of 500 million cu m of gas for 2010. Volumes for 2011 will be coordinated in addition. Gas will be supplied at commercial price, attached to level of prices for oil and oil products.