Baku, Azerbaijan, Jan.13
By Emil Ismayilov - Trend:
All of the major issues on engineering and supply within the South Caucasus gas pipeline expansion project have been resolved, the senior representative of SOCAR (State Oil Company of Azerbaijan) told Trend.
He said that the work within the South Caucasus gas pipeline expansion is being carried out without delay, as evidenced by the practical work on preparation for the start of construction.
"Supply of pipes is carried out within the project, and in Azerbaijan and Georgia, contractors have already begun all the necessary preparatory work for the construction," said the representative of SOCAR. "That is, the practical work proceeds at a normal pace and without any problems."
It should be noted that the expansion of the South Caucasus gas pipeline is part of the project of supply of Azerbaijani gas from Shah Deniz gas condensate field to Europe.
The consortium for Shah Deniz gas and condensate field's development in the Azerbaijani sector of the Caspian Sea signed a contract with Saipem/Azfen joint venture on May 2014 to hold construction works for the South Caucasus Pipeline's expansion.
The value of this contract is $735 million. The start of work is scheduled for January 2015 with mechanical completion of the Georgian section expected by the end of 2016 and the Azerbaijan section by the end of 2017.
The scope of work for this contract includes the construction of a 428 km pipeline loop and associated above ground installations, including block valves, a pigging facility and tie-ins in Azerbaijan and Georgia, as well as the construction of a 59 km second pipeline loop, and associated above ground installations in Georgia.
Export capacity of the pipeline will increase from the current nearly 10 billion cubic meters to 24 billion cubic meters per year as a result of the expansion work.
The Southern Gas Corridor will allow Europe to diversify its hydrocarbon supply sources and strengthen energy security and also will allow Azerbaijan to obtain a new market in Europe. A final investment decision was made on December 17, 2013 on the Stage 2 of the Shah Deniz offshore gas and condensate field's development. 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.
As part of the second stage of the field's development, gas will be exported to Turkey and European markets by expanding the South Caucasus gas pipeline and the construction of Trans-Anatolian (TANAP) and Trans-Adriatic (TAP) gas pipelines.
The contract for development of the Shah Deniz offshore field, which has proven reserve of 1.2 trillion cubic meters of gas and 240 million metric tons of gas condensate, was signed on June 4, 1996.
Edited by CN
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