Discussions held on diagnostics of gas supply system

A video conference took place under the chairmanship of Energy Minister Parviz Shahbazov between members of the Working Group on diagnostics of gas supply system and representatives of the international consulting organization McKinsey & Company, Ministry of Energy told Report.

The event discussed the preliminary record of the consulting company's diagnostic tests to develop proposals for reforms in this area.

Preparation of proposals for reforms in the field of gas supply in the country was entrusted to the Ministry of Energy by order of the President of Azerbaijan dated May 29, 2019 No. 1209 "On accelerating reforms in the energy sector of the Republic of Azerbaijan." The order also contains a provision on preparing a new draft law of the Republic of Azerbaijan "On Gas Supply" based on proposals from the Ministry of Energy.

In June this year, the Ministry of Energy and McKinsey & Company, one of the world's leading consulting companies, signed an agreement to conduct a detailed diagnosis of its gas supply system. Under the agreement, the company will provide consulting services to the Ministry of Energy in preparing proposals for reforms in this area to increase the efficiency of the gas supply system in the country, taking into account international best practices, to ensure reliable satisfaction of consumer needs.

Based on the diagnostics results, proposals will be prepared for the gradual transition to market relations in the field of gas supply, increasing the efficiency of investments and modernization of the regulatory framework. Legislative initiatives considered necessary for the reforms will be included in the new draft Law of the Republic of Azerbaijan "On Gas Supply."