Baku, Azerbaijan, Oct.1
By Emil Ismayilov - Trend:
Along with Bulgaria, some other European countries also intend to buy Azerbaijani gas outside the main supply route, a source at the State Oil Company of Azerbaijan (SOCAR) told Trend on Oct.1.
Future gas production, as part of Stage 2 of Shah Deniz field's development, will be exported to Turkey and to the European markets by means of expanding the South Caucasus Pipeline and construction of the Trans-Anatolian Gas Pipeline (TANAP) and the Trans-Adriatic Pipeline (TAP).
The source said that some countries in Southeastern Europe are willing to purchase around 150 million-300 million cubic meters of gas per year outside the Trans-Adriatic pipeline (TAP) project.
TAP project is designed to transport gas from the Caspian region via Greece and Albania and across the Adriatic Sea to southern Italy and then to Western Europe. The total length of the pipeline will be nearly 870 kilometers.
The source said that Bulgaria has already showed interest in this issue, Macedonia and several other Southeastern European countries are also ready to buy Azerbaijani gas. However, the source didn't name the other countries, citing this as a trade secret.
At the same time, the mechanism of ensuring this supply also remains an open question.
Bulgarian media reported in September 2014 that the country plans to start importing 200-300 million cubic meters of gas from Azerbaijan per year from 2016. It is expected that the final investment decision to construct a gas grid inter-connector between Greece and Bulgaria will be adopted in autumn of 2014. It is planned to complete the construction of the gas grid inter-connector by 2016.
SOCAR and Bulgaria's Bulgargaz signed a protocol of intentions in Baku on Sept.20. Additionally, a memorandum of understanding was signed between SOCAR and Bulgartransgaz.
On December 17, 2013, a final investment decision was made on Stage 2 of the Shah Deniz offshore gas and condensate field's development. The proven gas reserve of the field is estimated at 1.2 trillion cubic meters. The gas produced at this field will first go to the European market (10 billion cubic meters). Around six billion cubic meters will be annually supplied to Turkey.
The consortium for the development of the Shah Deniz gas condensate field in the Azerbaijani sector of the Caspian Sea, signed long term contracts (25 years) in September 2013 with nine European companies on gas supply.
The contracts for the purchase of gas from the second phase of development of the Shah Deniz field were signed in Baku with the following companies: Shell, Bulgargaz, DEPA, Gas Natural Fenosa, EON, Gaz de France, Hera, Enel and Axpo.
The first gas will be delivered to Turkey in 2018 and to Europe in 2019.
Edited by CN
