Long term cooperation – important aspect for ensuring Azerbaijani gas supply to Europe

Photo: Long term cooperation – important aspect for ensuring Azerbaijani gas supply to Europe

 / Oil&Gas

Baku, Azerbaijan, March 12
By Emil Ismayilov - Trend:

Long term and stable cooperation is important in terms of ensuring the supply of Azerbaijani gas to Europe, Deputy Vice-President of the State Oil Company of Azerbaijan (SOCAR), Vitaly Beylerbeyov said at the Azerbaijan Investment Summit, '2020 and further: accelerating economic development' in Baku on March 12.

Creation of a gas transmission infrastructure which will ensure the supply of gas from the Caspian region to Europe has become a reality and this infrastructure will be available for other countries, according to Beylerbeyov.

"We are ready to cooperate with other countries and the infrastructure will be ready for this," Beylerbeyov said.

Head of the Italian-Azerbaijani Trade Institute (ITAZERCOM), Manuela Traldi said at the summit that Europe is also interested in Turkmenistan's participation in the process of Caspian gas supply to EU countries.

On December 17, 2013, a final investment decision was made on the second phase of the Azerbaijani Shah Deniz offshore gas and condensate field's development. Gas from the field will go in the first instance to the European marketplace. The gas to be produced within the second phase of the field's development will be exported to Turkey at six billion cubic meters per year and to European markets at 10 billion cubic meters per year by means of expanding the South Caucasus Pipeline and construction of the Trans-Anatolian Gas Pipeline (TANAP) and the Trans-Adriatic Pipeline (TAP).

The contract for development of the Shah Deniz offshore field was signed on June 4, 1996.

The agreement's participants include such companies as the State Oil Company of Azerbaijan Republic (SOCAR) with a 16.7 percent share, BP (28.8 percent), Norway's Statoil (15.5 percent), Iran's NICO (10 percent), the French Total (10 percent), Russia's Lukoil (10 percent) and Turkish TPAO (nine percent).

Around 9.8 billion cubic meters of gas and 2.48 million tons of condensate (19.6 million barrels) were produced at the Shah Deniz field in 2013, compared to 7.73 billion gas and two million tons of condensate in 2012, according to BP's report.

The average daily volume of gas production at the field amounted to 26.8 million cubic meters, while the average daily volume of condensate production was equal to 53,740 barrels.

Translated by L.Z.

Edited by S.M.

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