Turkey's Petroleum Pipeline Corporation (BOTAŞ) and the State Oil Company of Azerbaijan Republic’s (SOCAR) signed a memorandum of agreement for the delivery of up to 1.7 billion cubic meters (bcm) of natural gas until December 31, 2024.

BOTAŞ will send enough natural gas to STPAS to fulfil the demands of its firms, according to an agreement signed between the nations' energy ministries on December 22 and published in the Official Gazette.

The arrangement entails the extension and renewal of an existing gas sales and purchase agreement (SPA). All applicable taxes, as well as import charges related to the SPA, the transportation tariff, and other transportation costs payable by BOTAŞ in Turkey, are included. However, a second yearly contract covering delivery amounts will be put up between two state-owned enterprises, considering BOTAŞ's take or pay duties.

The parties are anticipated to use the Baku-Tbilisi-Erzurum and Trans Anatolian Natural Gas Pipeline (TANAP) to carry additional natural gas volumes generated and transferred from upstream projects in Azerbaijan to their full capacity.

The memorandum, which is subject to revisions and modifications, will go into force after each country's internal legal procedures have been completed.