Cost of gas production in Azerbaijan significantly decreased
The cost of production of 1,000 cubic meters of gas by The State Oil Company of Azerbaijan Republic (SOCAR) has decreased by 14 percent.
A recent report published by SOCAR covers the statistics until the beginning of 2014 and indicates that the cost of production of 1,000 cubic meters of gas in 2013 was 38.02 manat, or $48.55, amd declined by 13.8 percent compared to 2012.
Some 5 percent of the total expenditures on the production of 1,000 cubic meters of gas fell to material costs, 26.9 percent - amortization costs, 17 percent - tax costs and 11.8 percent maintenance costs.
|
Year |
The cost of production of 1,000 cubic meters of gas |
|
2010 |
$43.40 |
|
2011 |
45.40 |
|
2012 |
56.42 |
|
2013 |
48.55 |
SOCAR'S report indicates that some 10 billion cubic meters of gas was consumed by the Azeri domestic market in 2014. 1000 cubic meters of gas was sold at $102.16 to produce electricity and $127.5 for others (housing sector, industry, etc.).
The housing sector consumed 2.3 bcm of gas, while power plants used 5.6 to 5.7 bcm of gas during 2014.
There is no official information about the country's gas export value, but reportedly Azerbaijan produced 18.1 bcm of gas, of which 6.5 billion was exported during last year.
Azerbaijan exported 0.2 bcm to Russia, 1.5 bcm to Georgia and about 4.5 bcm to Turkey.
Azerbaijan also swapped approximately 0.35 bcm of gas with Iran.
The Caspian country's gas production level increased by 0.2 bcm during 2014, compared to the previous year.