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Monday, June 29, 2009

Russia seals Azeri gas deal

06-29-2009 - Upstream OnLine - Russian gas giant Gazprom signed a gas supply deal with Azerbaijan today, though the terms of the agreement remain unclear, according to reports. The news of the deal came as Gazprom chief executive Alexei Miller said the company would import a modest 500 million cubic metres of Azeri gas from 2010, a Reuters report said. The news agency quoted Miller as saying that import volumes would, however, increase. Miller also told reporters that Azerbaijan has promised to give Gazprom priority as buyer when gas from the second phase of the Shah Deniz development comes on stream. Russia wants to secure Azeri gas supplies to fill the planned South Stream gas pipeline to Europe. The European Union has also been courting the government in Baku as it bids to line up feedstock for the Nabucco pipeline, which circumvents Russia.
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