Oil prices fall reduces cost of Azerbaijani energy projects, says minister (UPDATE)

Economy Materials 2 June 2016 11:33 (UTC +04:00)
Oil prices fall has reduced the cost of energy projects implemented by Azerbaijan

Details added (first version posted on 10:47)

Baku, Azerbaijan, June 2

By Anvar Mammadov - Trend:

Oil prices fall has reduced the cost of energy projects implemented by Azerbaijan, the country's Minister of Energy Natig Aliyev told reporters June 2.

He said that the crisis caused by the fall in oil prices has been positive for Azerbaijan, to some extent.

"The decline in oil prices has led to a decrease in the cost of our projects," Aliyev said. "For example, the cost of the Trans-Anatolian Natural Gas Pipeline (TANAP) project, which was previously estimated at $11 billion, now stands at $9.3 billion."

"The implementation of the Trans Adriatic Pipeline (TAP) project stands at $6 billion, the second phase of the project development of the Azerbaijani Shah Deniz gas field - $23.8 billion, the South Caucasus Pipeline Expansion Project - $4.9 billion," he added.

At the same time, the minister said that these figures are not final.

"It all depends on steel, pipes and equipment prices fluctuations on the market," Aliyev said. "If there is something we failed in, there is also something we succeeded in."

The important thing is that the drop in oil prices didn't affect implementation of the projects, he added.

"All the work goes according to schedule, there are no delays," the minister said. "The work regarding Shah Deniz-2 project has been finished by 71 percent, TANAP - by 55 percent and TAP - by 10 percent."

Azerbaijan plans to start gas supplies to Europe in the near future at the expense of the above mentioned projects. The original volume of the supplies will amount to 10 billion cubic meters per year. In the future, the export can be expanded through increasing gas production at the Shah Deniz field, as well as other promising gas contract areas.