How is the gas network built in Azerbaijan?

Production - The State Oil Company of Azerbaijan (SOCAR), the Azerbaijan International Operating Company (AIOC), Operating Companies (OPCs) and Joint Ventures (JVs) are engaged in the production of natural gas;

Transportation - Gas transportation in Azerbaijan is carried out by SOCAR's Gas Export Department. Its activities include receiving gas from the Operating Companies (OPs) and Joint Ventures (JVs), Shah Deniz and ACG fields, delivering SOCAR's gas volumes to interstate metering stations for sale in foreign markets, and fulfilling service contracts.

Purchase and sale - Purchase, transportation, sale of natural gas in the domestic market of Azerbaijan from gas producers to domestic distributors and consumers is carried out by the State Contract Corporation of the Republic of Azerbaijan “Azerkontrakt” JSC (“Azerkontrakt” JSC).

Distribution - The distribution and sale of gas in the domestic market in Azerbaijan is carried out by Azerigas Production Association, which acts as a natural gas monopolist.

Azerbaijan's domestic wholesale gas market

By the decision of the Cabinet of Ministers dated December 28, 2020, the State Contract Corporation of the Republic of Azerbaijan entrusts Azercontract JSC to purchase natural gas in the domestic market from gas producers in Azerbaijan from January 1, 2021, organize its transportation and sale to domestic distributors and consumers. was made.

Gas distribution in Azerbaijan is carried out by Azerigas Production Association. Azerigas purchases gas from Azerkontrakt JSC at wholesale prices and organizes its retail sale to domestic and non-residential consumers in the domestic market.