BAKU, Azerbaijan, July 17. BOTAS, a Turkish energy company, has given the State Oil Company of Azerbaijan Republic (SOCAR) the opportunity to increase spot gas supplies through the Malkochlar gas distribution hub, located on the Turkish-Bulgarian border, towards the Balkan Gas Hub, an informed source told Trend.
“In May this year, an agreement between SOCAR and BOTAS allowed the Azerbaijani side to transport up to 2.5 million cubic meters of gas per day to the EU via the Balkan Gas Hub in Bulgaria, provided there are available volumes of gas. Currently, there is potential to increase these volumes to 4 million cubic meters per day,” the source said.
This opportunity has been granted until the end of 2026.
By increasing production at the Shah Deniz field, which will reach peak volumes of 79 million cubic meters per day in 2024, Azerbaijan can send more gas to Europe, selling it on the spot market.
Türkiye's transit capabilities, including the link with Bulgaria through the Strandzha/Malkoclar gas compressor station, allow SOCAR to sell excess gas on the European market.
Since December 2020, the EU has been receiving gas from Shah Deniz via the Southern Gas Corridor (SGC) based on 25-year contracts with the Azerbaijan Gas Supply Company (AGSC).
These contracts encompass a total volume of 10 billion cubic meters per year, delivered to Europe via the Trans Adriatic Pipeline (TAP), the European segment of the SGC.
In 2022, the new IGB pipeline also joined TAP to fulfill
Bulgaria's long-term (25-year) contract with AGSC for gas supplies
from Shah Deniz, amounting to 1 billion cubic meters per year at
peak.