Iran and Russia competing for Azeri gas

Iran has asked if it can purchase the natural gas Azerbaijan will export when the second stage of the Shah Deniz project gets underway. Iran is prepared to pay an acceptable price for this.

The Deputy Vice President of the State Oil Company of Azerbaijan, Elshad Nasirov, has made a statement concerning this. He said that by 2013 Azerbaijan will double its natural gas production. He added that Azerbaijan is receiving many interesting suggestions, particularly from Russia’s Gazprom, which has expressed its readiness to purchase Azeri natural gas and pay European prices for it. He has also highlighted the Iranian proposal, stressing its advantages, in particular in transportation.

There are several options open to Azerbaijan. It can transport its gas through Russia and is currently doing so through Georgia and Turkey. Iran suggests it can transport the gas to Turkey through its territory. With all these opportunities opening up Azerbaijan is becoming more and more important in the area.