Georgia expects investments totalling $700 million within Shah Deniz-2 project

Photo: Georgia expects investments totalling $700 million within Shah Deniz-2 project   / Georgia

Tbilisi, Georgia, Dec. 17

By Nana Kirtzkhalia - Trend:

Georgia expects investments totalling $400-700 million as part of the second phase of Azerbaijani Shah Deniz field's development, Georgian Energy and Natural Resources Minister, Kakha Kaladze told journalists on Dec. 17.

"It is envisaged to expand the South Caucasus pipeline as part of the project (Shah Deniz-2), in order to further annually supply 16 billion cubic meters of gas to Turkey," Kaladze said. "It is planned to construct a 387 kilometres long pipeline in Azerbaijan and a 55 kilometres long pipeline in Georgia, as well as to install a new pressure regulating station and two additional compressor stations in Georgia".

He noted that $400-700 million will be invested to Georgia within the Shah Deniz-2 project.

Kaladze went on to add that after the start of the pipeline's operation, Georgia will receive additional natural gas.

The Final Investment Decision on the second phase of Shah Deniz field's development was made on Dec. 17 in Baku. Gas within the second stage of the field's development will be exported to Europe through expansion of the South Caucasus gas pipeline and construction of the Trans-Anatolian and Trans-Adriatic gas pipelines.

Reserves of the Shah Deniz field are estimated at 1.2 trillion cubic meters of gas.

The cost of the second stage of development of Shah Deniz is estimated at $25 billion.

Within the second stage of the field's development it is planned to produce 16 billion cubic meters of gas, six billion of which will be delivered to Turkey and 10 billion will be transported to Europe.

Translated by E.A.

Follow us on Twitter @TRENDNewsAgency