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SOCAR ready to consider possibility of gas supplies in one of European countries

Business Materials 31 October 2014 15:05 (UTC +04:00)

Baku, Azerbaijan, Oct.31

By Emil Ismayilov - Trend:

In the presence of necessary gas transport infrastructure, SOCAR (State Oil Company of Azerbaijan) is ready to consider the possibility of gas supplies to Bulgaria before the main export volumes contracted within the framework of the second stage of the development of Shah Deniz gas condensate field, a senior representative of the State Oil Company told Trend

His remarks were made when asked about Bulgaria's intention to buy Azerbaijani gas at earlier terms.

Bulgaria is ready to buy Azerbaijani gas, and SOCAR Company appreciates it, SOCAR representative said.

"Of course, we also treat it positively," said the representative of SOCAR. "But we need a certain time to define the technical solution. That is, I mean that the pipeline system should allow exporting of Azerbaijani gas to Bulgaria. I would say that this is not a quick process."

SOCAR and Bulgargaz inked a protocol of intentions and a memorandum of understanding in Sept. 2014.

Previously, it was reported that Bulgaria is ready to start buying Azerbaijan's gas from 2016 in the amount of 200-300 million cubic meters a year. It is expected that a final investment decision will be made in autumn 2014 to construct a gas grid interconnector between Greece and Bulgaria, which should be ready till 2016.

On Dec. 17, 2013 a final investment decision was made on Stage 2 of the Shah Deniz offshore gas and condensate field's development. The field's proven gas reserve is estimated at 1.2 trillion cubic meters.

The gas to be produced as part of the Stage 2 of the field's development will be exported to Turkey and to the 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).

In Sept. 2013, the consortium for development of the Shah Deniz gas and condensate field in the Azerbaijani sector of the Caspian Sea signed long-term contracts (for 25 years) with nine European companies for the supply of gas.

The contracts for the purchase of gas from the Stage 2 of the Shah Deniz field's development were signed in Baku with Shell, Bulgargaz, DEPA, Gas Natural Fenosa, EON, Gaz de France, Hera, Enel, Axpo.

The first volumes of gas will be delivered to Turkey in 2018, and in 2019 - to Europe.

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