Natural gas tariffs have been reduced for iron production enterprises in Azerbaijan.
Elchi.az reports that the Tariff (Price) Council has made a decision regarding this.
According to the information, the natural gas tariff has been determined for the “Agglomeration (pelletizing) of iron ores and concentrates and iron production using direct reduction/recovery technology” field.
Work is underway to efficiently use the country’s natural resources and establish production enterprises covering the processing stages of ferrous metallurgy.
In this regard, the natural gas tariff for the agglomeration (pelletizing) of iron ores and concentrates and iron production using direct reduction/recovery technology has been reduced and approved at the level of 200.6 manats per 1000 cubic meters, including VAT. It should be noted that the current natural gas tariff for the industrial sector is 240 manats per 1000 cubic meters, including VAT. This decision will stimulate the development of large processing enterprises in iron ore production and the formation of a value chain in this area.
In this area, the development of the Dashkasan iron ore deposit is a large-scale project promising great economic benefits for our country. Within the framework of the Dashkasan iron ore project, the value chain envisages the production of iron ore concentrate starting from the extraction of ore, transportation by slurry pipeline, and pellet production in the final stage. This project will contribute to the development of the non-oil and gas sector by reducing import dependence, expanding export opportunities, and creating new jobs.