ANKARA (Turkey), January 11 (SeeNews) - Turkey's state-owned Petroleum Pipeline Company (BOTAS) has signed a memorandum of understanding (MoU) with SOCAR Turkiye Petrokimya for the delivery of up to 1.7 billion cubic metres of natural gas that will run until the end of 2024, local media reported on Tuesday.
BOTAS will deliver enough natural gas to SOCAR Turkiye Petrokimya to cover the needs of the companies of SOCAR Turkiye Enerji group, a subsidiary of Azerbaijan's national oil and gas company SOCAR, Anadolu Agency reported.
The MoU, which is subject to amendments and updates, will take effect upon the completion of the respective legal procedures in Turkey and Azerbaijan.
The agreement is a renewal and addition to the existing gas sales and purchase agreement (SPA) that covers the import costs relating to the SPA, the transportation tariff and other transportation costs incurred by BOTAS in Turkey, and all applicable taxes, Anadolu Agency added. A separate annual contract covering the delivery volumes will be concluded between BOTAS and SOCAR Turkiye Petrokimya, taking into consideration the take-or-pay obligations of BOTAS.
The parties to the MoU are expected to utilise the full available capacity of the Baku-Tbilisi-Erzurum and Trans Anatolian Natural Gas Pipeline for the transmission of additional natural gas volumes that will be produced and transported from upstream projects in Azerbaijan.