SOCAR Issues Statement Regarding Natural Gas Supply to Mamed LLC
SOCAR Gas Export-Import LLC has been supplying natural gas to Mamed LLC since February 2020 under a valid contractual agreement for the purpose of providing gas to residents of Qizilajlo village in Marneuli Municipality.
The supply of social gas is carried out strictly in accordance with the tariff established for Mamed LLC by the competent regulatory authority. Our company has no authority whatsoever to determine tariffs for social gas. The establishment of such tariffs falls exclusively within the competence and prerogative of the authorized state body. Therefore, any allegations directed at SOCAR regarding the artificial increase of tariffs are entirely unfounded.
Since 2020, the price of social gas supplied to Mamed LLC has changed four times. On each occasion, Mamed LLC interpreted the new pricing at its own discretion. While there were periods when the company recognized and applied the revised tariffs, there were also extended periods during which Mamed LLC unilaterally refused to accept the updated prices and continued to settle payments based on the outdated tariff established in 2020. As a result, the company accumulated substantial debt due to the non-payment of supplied natural gas.
We would like to emphasize that all accusations made by Mamed LLC against SOCAR are without merit. Our company's operations have always been conducted in full compliance with applicable legislation, mandatory state regulations, and all relevant normative acts.
Once again, we underline that SOCAR does not set tariffs for social gas. We strictly adhere to the purchase and sale tariffs for social gas as developed and approved by the authorized regulatory body.
On numerous occasions, we urged Mamed LLC to return to the legal framework and operate in accordance with the regulations governing the social gas market segment. Unfortunately, these efforts proved unsuccessful. Consequently, we were compelled to take decisive measures and suspend gas supplies to Mamed LLC until our contractual and financial relations are fully resolved.
We also believe that legal disputes pursued by Mamed LLC against third parties do not relieve the company of its obligations toward SOCAR. It is important to note that SOCAR has neither initiated nor is currently conducting any legal proceedings against Mamed LLC. We remain hopeful that the parties will be able to find a mutually acceptable solution and resolve the current situation through constructive dialogue.
