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Azerbaijan's Russian gas imports total 4.5 billion cu m in 2005

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BAKU, January 13 (RIA Novosti, Gerai Dadashev) - Azerbaijan imported 4.54 billion cubic meters of Russian gas last year, national oil company Socar said Friday.

December imports were around 384.2 million cu m, the company said. Socar paid $61 per 1,000 cu m for its gas last year.

Under an agreement between Gazexport, Gazprom's export arm, and Socar, Azerbaijan will receive 4.5 billion cu m of gas at a price of $110 per 1,000 cu m in 2006.

Azerbaijan's annual domestic gas needs total 9.5-10 billion cu m, with gas making up 45% of the country's energy mix.

Azerbaijan produces around 5.5 billion cu m of gas, and is expected to raise domestic production significantly once its Shakh-Deniz field in the Caspian Sea comes on stream.

Under an agreement signed in December 2003, Gazprom is to supply Azerbaijan with 4.5-5.5 billion cu m of gas per year until the end of 2008.

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