Azerbaijan, Baku, Nov. 1 / Trend E. Ismayilov /
Shah Deniz Consortium expects to get the proposals from Nabucco-West project regarding the short-term financing of the project to start its implementation, SOCAR head Rovnag Abdullayev told media today.
He said that such an agreement was previously signed with the Trans-Adriatic Pipeline (TAP) project, which allows to examine and to consider the project thoroughly.
Most likely, such an agreement with this project will be reached on the basis of further proposals on Nabucco-West project.
Abdullayev said that the negotiations with gas buyers within both projects are underway. In particular, a meeting of the steering committee of the development project of Azerbaijani offshore gas condensate field "Shah Deniz" was held yesterday. Both projects were discussed.
SOCAR head said that besides the cost of transit, great attention is paid to the market value of gas while considering the projects.
Concluding an agreement on funding will allow making a final decision regarding the route of supplying Azerbaijani gas to Europe.
Shah Deniz partners consider two possible projects of Azerbaijani gas transportation to Europe - Nabucco West and Trans Adriatic Pipeline (TAP). These projects are considered on the same criteria in order to make a decision be May, 2013.
Earlier, a similar agreement was signed with the project TAP. Under the agreement, funding will be used for various activities under the project, which is planned to be implemented before a final decision on the export pipeline route of Azerbaijani gas to Europe in 2013.
The agreement also includes the possibility of acquiring 50 percent in the TAP project by Shah Deniz partners.
Nabucco-West envisages the construction of 1,300 km of pipeline (Bulgaria: 412 km, Romania 469 km, Hungary 384 km, Austria 47 km). from the Turkish-Bulgarian border to the Austrian Baumgarten. The shareholders are the Austrian OMV, Hungarian FGSZ, Bulgarian Bulgargaz, Romanian Transgaz, Turkish Botas and German RWE.
TAP is designed to transport gas from the Caspian region via Greece and Albania and across the Adriatic Sea to southern Italy and further into Western Europe. TAP's initial pipeline capacity will be 10 billion cubic metres per year, expandable to 20 billion cubic metres per year. TAP's shareholders are EGL of Switzerland (42.5 percent), Norway's Statoil (42.5 percent) and E.ON Ruhrgas of Germany (15 percent).
The total length of TAP is approximately 800 kilometers. The initial capacity of the TAP pipeline will be 10 billion cubic meters per year, expandable to 20 billion cubic meters per year.