"Azerbaijan to Prefer Economically Advantageous Gas Transportation Route" – Minister
Azerbaijan, Baku, 4 July / Trend corr S.Agayeva/ "Azerbaijan will prefer an economically advantageous route to transport its gas," Azerbaijan's Foreign Minister Elmar Mammadyarov said to journalists in Baku on 4 July.
"Economic advantageousness of a route is the key point for us," said Mammadyarov.
This week, Azerbaijan negotiated transportation of its energy resources with Ukraine, Russia and the Czech Republic. According to Minister, negotiations on purchase of Azerbaijani gas with Russia's Gazprom are underway, while gas transportation to Europe is still remains an issue of current importance for Azerbaijan.
Gas may be transported to Europe and other countries within development of a large gas and condensate Shah Deniz field located in Azerbaijan's sector of the Caspian Sea.
The contract on development of off-shore Shah Deniz field was signed on 4 June 1996. The sides to the contract are ВР (operator - 25.5%), Statoil (25.5%), SOCAR (10%), LukAgip (10%), NICO (10%), Total (10%), and TPAO (9%).
Gas production in Shah Deniz commenced in December 2006. The gas is transported to Georgia and Turkey via South Caucasus gas pipeline. Azerbaijan also purchases the gas.
Some 8.6bln cu m of gas is envisaged to be produced within Stage I per year. The gas will be supplied to Azerbaijan, Georgia and Turkey. The production will be increased up to 20bln cu m within Stage II which will commence to be realized after 2012. Within Stage II gas will be exported to European countries.
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