AZERBAIJAN: Law No. 513-IQ of 1998 on Gas Supply (2021 Ed.)

Meta Data
Title in national language: 
Qaz təchizatı haqqında AZƏRBAYCAN RESPUBLİKASININ QANUNU
Draft: 
No
Revision of previous policy?: 
No
Draft Year: 
1998
Effective Start Year: 
2021
Scope: 
National
Document Type: 
Law
Economic Sector: 
Energy
Energy Types: 
Gas
Issued by: 
Office of the President of the Republic of Azerbaijan
Source: 
Policy Database for the Countries of CIS (RU)
Faolex (EN)
e-Qanun (AZ)
File: 
Law No. 513-IQ of 1998 on Gas Supply (RU)
Law No. 513-IQ of 1998 on Gas Supply (EN)
Overall Summary: 
The Law regulates the exploration, processing, transportation, storage, distribution, sales of the natural gas and all energy carriers in gaseous and liquid form. The regulatory document covers the thematic areas of standardization, land management, engineering and logistics. --- The Law on Gas Supply stipulates that the State operates a monopoly-management system of gas production, pipeline transportation, storage and distribution and underscores that private entities require a state concession to enter the sector.
Environment
Energy environmental priorities: 
Chapter 5 ‘Safety, Protection of Human Health and the Environment’. The policy articulates the need for strengthening regulatory mechanisms aimed at reducing environmental impacts of gas-related activities. Contractors are obliged to ensure compliance with the established norms and requirements. The contractor shall develop a plan of action on the protection of the environment, minimize risks to human health, reduce water pollution and prevent habitat distraction. --- Art. 7 focuses on the assessment of environmental impacts of gas exploration activities.
Pollution control action plans: 
Chapter II, art. 3. In response to existing environmental concerns, the policy seeks to strengthen requirements for building, construction and operation of gas facilities and installations. Gas installations must meet the standards set to prevent the leakage of gas to the atmosphere. [...].
Pricing
Energy pricing: 
The approach to tariff determination is based on tariff setting methodology for gas supply by distributors, and tariffs for cubic meter of gas supplied to consumers of various categories. --- Art. 13.5. In specific cases, tariffs and conditions for gas supply set under Art. 13.3 and 13.4 are not applicable as gas distributor concludes an agreement with consumer in accordance with conditions accepted by the parties. The agreement is subject to consideration and approval by a relevant regulatory body.
Governance
Energy management principles: 
Art. 14.3. Extraction of natural gas from an underground storage facility is carried out upon the issuance of special permissions.
Technology
Natural gas transportation technology: 
[...] Gas installations must meet the standards set to prevent the leakage of gas to the atmosphere. Other technical parameters include pressure, temperature, structure of gas facilities and installations, etc.--- [C]onstruction and operation of underground gas storage facilities is carried out on contractual basis. The following requirements shall be fulfilled: transfer of gas to the geological layers not used for storage of gas is limited; distribution of gas in vertical and horizontal directions is prevented; chemical, physical or bacteriological impact on underground waters is minimized, geological layers used to locate natural gas storage facilities are protected, etc. ---The policy introduces a gas licensing system. ---As provided by the present Law, special authorization (contractual agreement) is required to carry out activities on gas transportation, building gas distribution networks and underground gas storages, operation and reconstruction of storage facilities.