The cost of Azerbaijani gas to Turkey will be 12% cheaper than Russian with the commissioning of the TANAP gas pipeline.
According to Hurriyet newspaper, as the price of Russian gas for Turkey today is $460 per 1000 cubic meters, Azerbaijani gas will not be so cheap, experts believe.
If this formula is agreed, the price for Azerbaijani gas to Turkey will make $390-400.
Now Azerbaijan sells gas to Turkey for $320 which is 30% less than prices on Russian gas.
Today Turkey gets the cheapest gas from Azerbaijan and the most expensive from Iran and Russia. Turkey paid $20bn for gas last year alone.
As part of the Shah Deniz -2 field development Turkey is supposed to receive 6bn cubic meters of gas.
The second stage of the project envisages annual production of 16bn cubic meters of gas. The start of the preliminary engineering works symbolizes an important stage in the implementation of this project.
The engineering and technical studies will be overhauled, additional wells be drilled, commercial agreements be completed and main construction contracts be launched.