Shah Deniz-2 project to have significant impact on economies of many countries

Photo: Shah Deniz-2 project to have significant impact on economies of many countries / Oil&Gas

Baku, Azerbaijan, May 15
By Emil Ismayilov - Trend:

The investments of the second phase of development of the "Shah Deniz" gas condensate field as well as expansion and creation of gas transport infrastructure in Azerbaijan and Turkey is estimated at $46.5 billion.

Azerbaijan's Energy Minister, Natig Aliyev made the remarks in his interview with 'The Business Year-Azerbaijan 2014' magazine.

In particular, the cost of the second phase of development of the field totals approximately $ 27 billion, the expansion of the Sangachal Terminal Expansion and of the South Caucasus gas pipeline - $ 6.5 billion, and the estimated cost of construction of the Trans-Anatolian gas pipeline (TANAP) - about $ 13 billion, the minister said.

The implementation of the second phase of the Shah Deniz 2 will have a major positive impact on the economies of many countries, including Azerbaijan, Turkey, Georgia, Italy, Greece, and Azerbaijan.

The final investment decision was made on the second phase of the Azerbaijani Shah Deniz offshore gas and condensate field's development on December 17, 2013.

The gas to be produced within the second phase of the field's development will be exported to Turkey and to 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 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) with nine European companies on gas supply in September 2013.

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, Bulgar Gas, 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.

The contract for development of the Shah Deniz offshore field, which has proven reserves of 1.2 trillion cubic meters of gas, was signed on June 4, 1996.

Participants in the Shah Deniz field development are the State Oil Company of Azerbaijan (SOCAR) with a share of 16.7 percent, British BP (28.8 percent), Norway's Statoil (15.5 percent), Iran's NICO (10 percent), French Total (10 percent), Russia's Lukoil (10 percent), Turkish TPAO (9 percent).

Edited by C.N.

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