History of gas production and supply in Azerbaijan

The extensive usage of gas in Azerbaijan dates back to the middle of the XIX century. In 1895, natural gas was firstly used at the factory in Surakhani as a fuel to produce steam. In 1902, one of the pits drilled in the area hit a gas fountain. This separate gas pit with a daily flow of 57,000 cubic meters facilitated an establishment of the first gas transportation system in Azerbaijan.

Until 1954, directed gas was mainly used in Azerbaijan. The formation of the gas system in Azerbaijan took place in the conditions of extra gas abundance.

As mentioned above exploitation of industrial natural gas in Azerbaijan dates back to the XIX century.

The formation of the intensive production, structure and infrastructure, and the corresponding network complex dates back to the 1920s. In order to manage this area in a centralized manner, an auxiliary department for gas production and processing was established in 1923 under the Commodity Department of the “Azneft” Production Association. Thus, the foundation of the gas industry was laid in Azerbaijan. In two months after our great leader Heydar Aliyev was elected as a head of the government in august of 1969, he improved the structure of “BakGas” Department under the Ministry of Public Unilities of Azerbaijan SSR in February 1958, in 1936 “AzGas” Trust, and it has been turned into “BakGas” office under the government.

In 1983, the State Gas Committee was established on the basis of the “BakGas” Administration. This Committee was merged with the Azerbaijan State Fuel Committee in 1989.

After Azerbaijan regained its independence, the reconstruction of the economy in the national gas sector, increasing production, raising the level of service, restoring the gas transportation system was an important governmental task. At the same time, the problem of a single organization was raised and relevant combinations were made within a certain framework. Thus, in 1992, the republican government merged the different gas companies operating in various structures in the country to meet the needs of the national economy, the population in natural gas and its products, household gas equipment, gas reception, storage, transportation, and “AzeriGas” State Company was established to work on the other sectoral complex, distribution, sale, supply and etc. Production and processing complexes remained as a part of SOCAR. In 1996 “AzeriGas” Closed Joint-Stock Company was established, and due to the order of the President of the Republic of Azerbaijan of July 2009, about the Improvement of management mechanisms of oil and gas industry, “AzeriGas” Closed Joint-Stock Company by being reorganized became a part of SOCAR, and right now it continues its activity as "Azerigas" Production Association.