07-05-02 Azerbaijan Republic's Ambassador to the Islamic Republic of Iran, Abbasali Hassanov, said that Iran and Azerbaijan are engaged in talks aimed at providing the required Liquid Natural Gas (LNG) of Nakhichevan Republic.
Hassanov, who was speaking on the sideline of the inauguration ceremony of Astara Passenger Terminal, added, "according to the prepared plan for the project, Iran will take advantaged of Azerbaijan's Shah Deniz LNG field in the Caspian Sea, and instead, provide the required LNG of the Nakhichevan Republic. He said that the LNG from Shah Deniz field will be gained some three years from now, and that will be the time when Azerbaijan will be able to pay back the LNG obtained form Iran.

The Autonomous Nakhichevan Republic is a separated part from the Republic of Azerbaijan whose connection with that republic's mainland was detached due to the 10 year war with Armenia over Karabakh, and getting access to it for the Azeris is possible merely through the air, or through Iran's soil.
The Azeri ambassador said: "although the required pipelines for transferring LNG are already installed, due to the difference of opinion over the quality of Iran's LNG for export, the two countries had not reached consensus over sales of LNG to Nakhichevan so far. He added that the other reason for the delay in signing a contract for the purpose has been the $ 90 value of Iran's LNG exports, while the comparative price in various Commonwealth of Independent States (CIS) is between $ 42 to $ 53.

Hassanov said that the current talks over the LNG deal are done regardless of the present cost, and since the first round of them is already finalized in Tehran, we are looking forward to their second and last round of talks which will be soon convened in Baku. He said that the amount of Nakhichevan Republic's annual LNG requirement is around 100 mm cm, which can reach the 500 mm sealing when the repairs work of the current pipelines is completed and that republic's industries are fully operational. Hassanev said: "the physical conditions for transferring Iran's LNG to Nakhichevan are quite favourable since there is already a pipeline between Iran's Khoy and Jolfa cities.
The Azerbaijan Republic envoy said that returning the LNG to Iran, too, will be done through the currently other pipeline in the region between Azerbaijan's capital, Baku, and Iran's border city of Jolfa. He concluded: "before the collapse of the former Soviet Union, the said pipeline was used for exporting Iran's LNG to the USSR, but the line is currently under repairs and will be used for returning the gas that Iran will export to Nakhichevan.