AzMeCo suspends purchase of gas from Russian 'Gazprom'

Baku. 20 October. REPORT.AZ/ AzMeCo (Azerbaijani Methanol Plant) suspended purchase of gas from the Russian company "Gazprom".

Report was told in AzMeCo, due to the decrease in world prices purchase of gas by "Gazprom" on the price of the existing contract for the plant has become uneconomical. "A decision was made to suspend the purchase of gas from" Gazprom", as under the existing conditions production proceeded at a loss", AzMeCo says.

During the contract, AzMeCo purchased more than 100 mln cubic meters of gas from "Gazprom". On September 11, 2015 AzMeCo signed an agreement with Russian "Gazprom export". According to the agreement, each year "Gazprom" had to sell 2 bln cubic meters of natural gas to the plant.

Natural gas supplies from "Gazprom" would provide a guaranteed 100% load capacity of Qaradag methanol plant.

AzMeCo founded in 2007 and commissioned in December 2013. Production capacity is 720 thousand tons of methanol per year.