Azerbaijan May Launch Gas Supply to Greece before Implementation of Shah Daniz Project’s Second Stage

Oil&Gas Materials 23 April 2008 18:40 (UTC +04:00)

Azerbaijan, Baku, 23 April / Trend corr. S.Aliyev / Azerbaijan may launch gas supply to Greece before implementation of the second stage of the project on development of gas-condensate field Shah Daniz, scheduled for 2013, the State Oil Company of Azerbaijan (SOCAR) high ranking representative stated.

Under the contract, the gas sale is carried out only to Azerbaijan, Georgia and Turkey and no transit is planning to other countries within the framework of the first stage of Shah Daniz project.

Presently, Azerbaijan and Turkey hold discussions on transporting of the Azerbaijani gas via Turkey to European countries. According to SOCAR representative, there is progress in the transit agreement, as Turkey is interested in the project.

Currently, Turkey is specifying its need during the second stage of development of Shah Daniz field.

Greece is also planning to purchase the Azerbaijani gas. Greece has submitted the project of the agreement on gas supply (1.5bln or 2bln cu m) from Azerbaijan within the framework of the second stage of Shah Daniz project. Gas supply is planning to carry out via the pipeline, which was put into commission in 2007, connecting Greece with Turkey.

SOCAR does not include that Azerbaijan and Greece will sign bilateral contract before implementation of the second stage of Shah Daniz project. It can happen if only Turkey will provide the right to transit the Azerbaijani gas, SOCAR said.

"Today, Azerbaijan cannot hold negotiations about concrete volumes of gas with consumers from Europe, as Turkey does not detail its gas need, as well as the transport corridor to European countries," SOCAR representative noted. The corridor for gas transit to European countries will be specified in compliance with net profit of partners on Shah Daniz project.

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