Caspian Energy (CE): Mr. Hajiyev, could you please sum up the results of the activity of Azerigaz Production Union operating since 2009?

Akbar Hajiyev, General Director,    SOCAR Azerigaz PU: As you know, in September of 1994 SOCAR and 11 international oil companies signed an agreement on development of Azeri, Chyrag and deep-water Guneshli fields. This event laid a cornerstone of the international energy cooperation guaranteeing economic development in the region. Azerigaz Production Union is one of the basic constituents of the oil-gas strategy of Azerbaijan. Over the period of operation of Azerigaz PU in 2009-2014, the union constructed new gas pipelines to the length of 26,210.5km, overhauled 7,873.6km long gas pipeline, and supplied gas to 687 residential estates. 

Owing to performed operations, the quantity of subscribers supplied with gas exceeded 1.7 mln. Uninterrupted supply of gas to the population and industry of Azerbaijan is our achievement. We continue supplying residential estates with gas and conduct overall reconstruction of gas transmission systems. 

CE: Azerigaz PU attaches big importance to safety issues. What could you tell about this issue? 

Akbar Hajiyev: Azerigaz PU attaches big importance to health and safety of its workers. We also work on introduction of international standards. Appropriate work has already been carried out in this direction.  Based on the schedule set in accordance with the requirements of international standards ISO 9001 (quality management system), ISO 14001 (environmental management system) and OHSAS 18001 (occupational health and safety), internal auditing was held within the administrative staff of the PU and the PU-run organizations, and necessary measures were taken for addressing incompliance. 

In this regard, the Turkish Institute of Standards has completed preparing for conduction of the supervisory audit in structural units, which apply international standards ISO 14001 and OHSAS 18001, as well as preparatory work for receiving ISO 9001 certificates. 

CE: How do things stand with collection of fees from subscribers? 

Akbar Hajiyev: Increase of collection of fees was one of the major achievements of Azerigaz PU over the past years.   It is certainly also associated with the growth of the paying capacity of the population, which is the result of improvement of the economic situation in the country after signing of the Contract of the Century. Therefore, it will be relevant to name the collection figures which clearly illustrate the situation. A total of 1,523,567,913 cubic meters of natural gas was sold to the population within 7 months of 2014. The collection of fees totaled 100.9%. Other consumers were sold 1,104,885,623 cubic meters. The collection rate totaled 96.67%. 

СЕ: How is it going with the supply of gas to buildings on basis of requests of cooperatives? 

Akbar Hajiyev: Azerigaz PU also continues working on supplying gas to multi-storey buildings. Through January-July 2014, Azerigaz PU, which had considered the applications of legal and physical entities, supplied gas to 103 high-rise buildings which had submitted relevant documents. In general, a total of 10,299 apartments were supplied with gas. It is also noteworthy that the process of considering applications of residential estate construction cooperatives was accelerated as well. 

Azerigaz PU is taking an active part in big state projects. In particular, Azerigaz PU performed broad-scale operations within the framework of preparation for the First European Games to be hosted in Baku in 2015. Due to the construction of the Olympic stadium and expansion of the Ziya Bunyadov Avenue, the existing gas pipelines were removed from the protected zone of the road; new 315mm polyethylene gas pipelines to the length of 4110m were laid. 

Apart from this, the Azizbeyov gas distributing station located at the construction site of the Olympic stadium was eliminated. 530mm pipelines to the length of 790m were laid for the construction of the new gas distributing point. Apart from this, installed were a 720mm steel casing pipe to the length of 138m, 3 closing valves, 3 gas regulators and 9 different diameter gas meter boxes. 

CE: How is the preparation for the forthcoming autumn/winter months going on? 

Akbar Hajiyev: Our special focus is on preparation for autumn/winter months. In this regard, Azerigaz PU issued the Decree#326 dated April 30, 2014 on fulfilling the agenda, consisting of 347 paragraphs. In accordance with the agenda, in May-July 2014 Azerigaz PU repaired 15,884rm of gas pipelines and laid new gas lines. Besides, the PU installed 71 gas regulators and gas meter boxes, and also performed works on check-up, repair and lubrication of the gas equipment. 

Along with it  we continue replacing gas meters. As of August 1, 2014, out of the total amount of consumers, which equal 1,678,783, Azerigaz PU replaced 1,481,937 meters (88.3%) with new ones, smart card and Elster G-4T (SOCAR). As of August 1, 2014, 852,063 smart card meters were installed for consumers, including 831,771 Itron gas meters and 20,292 Gallus-2002 gas meters. 

Targeting high-quality technical inspection in flats of consumers in Baku and Absheron district, the PU established a department on maintenance of gas pipelines and devices with the staff of 153 people (3 managers and 150 engineers and technicians). The major task of area engineers is to control illegal connections to the gas pipelines, changes in places of gas pipelines, devices and equipment and their number inside flats. The important point is to conduct instruction and if necessary refresher briefing of subscribers about the natural gas use rules. 

CE:  How often do you face cases of gas use violation by consumers? 

Akbar Hajiyev: I would like to particularly dwell on this question. In January-July 2014 Azerigaz PU prepared 6,357 deficiency acts for violation of gas usage rules. Of this, 2,962 acts were submitted to the residential consumers and 55 acts to other consumers. 

In accordance with the available deficiency acts, 3,340 consumers were registered in the subscriber base for illegal gas use (without registration). The losses of Azerigaz PU estimated on the basis of deficiency acts made 1,018,839 AZN. At the same time, the damage worth 732,789 AZN was compensated.

With confidence, I would like to say that Azerigaz PU will turn into an agency meeting all international standards in the full sense of the word.