Gazprom delegation in talks with SOCAR

BAKU, Azerbaijan, Aug. 31 (UPI) -- A delegation from Russian gas giant Gazprom met with their colleagues in Azerbaijan to discuss gas purchases and reconstruction of an export gas pipeline.

Representatives from Gazprom inspected gas compressor stations near the Russian border and provided preliminary details regarding work on the Baku-Novo-Filya gas pipeline to Russia, the Azerbaijan Business Center reports.

Gazprom signed with the State Oil Co. of Azerbaijan Republic a memorandum of understanding earlier this year for the purchase of Azeri gas from January 2010. Monitoring at gas compressor stations at the Baku-Novo-Filya pipeline would begin in September, Gazprom said.

Alexei Miller, the chief executive at Gazprom, said initial volumes would reach 17.6 billion cubic feet per year at a "basic price that is competitive for Azerbaijan."

SOCAR only has a limited capacity to export gas to Russia each year, but may increase its amount through developments at Phase 2 of the massive offshore Shah Deniz gas field in the Caspian Sea, the report said.

Gazprom in 2008 purchased 23.3 trillion cubic feet of natural gas from Turkmenistan, Uzbekistan and Kazakhstan.

Azerbaijan and its Caspian partners have emerged as vital resource options for Russia and the European Union.