BAKU, Azerbaijan, June 4. Türkiye and Azerbaijan have signed an agreement to extend Azerbaijani gas supplies from Stage 1 of the Shah Deniz field development, Trend reports via the State Oil Company of Azerbaijan Republic (SOCAR).
The agreement extends gas supplies for the period 2025-2030.
Türkiye has been receiving gas from Shah Deniz Stage 1 since 2007 via the Baku-Tbilisi-Erzurum (BTE) gas pipeline. In 2021, Azerbaijan and Türkiye extended their gas supply contract from Stage 1 of the field through the BTE pipeline for 2022-2024.
Additionally, since 2018, Türkiye has been receiving gas from Shah Deniz Stage 2 through the Trans-Anatolian Gas Pipeline (TANAP) pipeline.
The above extension agreement between Türkiye and Azerbaijan was signed in Istanbul on May 14, 2024.
The agreement specifies that Türkiye will allow Azerbaijan to transport an additional 2.5 million cubic meters of gas per day to the EU (specifically to the Balkan Gas Hub in Bulgaria) via the Malkoclar gas distribution hub on the Turkish-Bulgarian border, contingent on the availability of these additional volumes.
In return, Azerbaijan commits to facilitating the transit of Turkmen gas to Türkiye through its territory, starting from the border with Iran.
The agreement for exploration, development, and production sharing of the promising Shah Deniz field was signed on June 4, 1996, and ratified on October 17, 1996.
In 2013, the development agreement for the Shah Deniz field was extended from 2036 to 2046.
The project participants include bp (operator - 29.99 percent), Lukoil (19.99 percent), TPAO (19 percent), NIKO (10 percent), and SGC Upstream (21.02 percent).
