The proposed volume of gas imports from Iran is 350 million cubic meters per year. Azerbaijan proposes two schemes to pay for the gas - either with Azerbaijani electricity, or gas - but starting in 2006-2007 when the Shah Deniz field is launched. The Iranian side initially insisted on cash payment for the gas.
To supply gas from Iran to Nakhichevan it will be necessary to build a gas pipeline and reconstruct the gas system in the autonomous republic. This work is estimated at $15-$20 million.
The Republic of Azerbaijan will deliver oil to one of Iran's northern ports, and pick up equal amounts of Iranian crude from a port on the Persian Gulf through a pipeline between Neka and Tehran if it costs low, its ambassador announced Monday.
In return, Iran will sell its own oil from Persian Gulf ports on behalf of the Caspian producers. The Azeri ambassador said his country has now to pay 12 dollars for transferring each ton of crude and "this is not economical".
