Azerbaijan, Baku, March 12 / Trend /
The State Oil Company of Azerbaijan Republic (SOCAR) continues negotiations on the transportation of compressed natural gas (CNG) to Europe. Recently, Baku hosted a meeting of a joint working group on the project to transport the Azerbaijani gas to the European markets through Bulgaria, SOCAR reported.
Representatives of the project partners to develop the Shah Deniz gas condensate field in Azerbaijan sector of the Caspian Sea also attended the meeting.
The parties discussed the economic profitability of the project delivery of the Azerbaijani compressed gas to Bulgaria and other European countries via the Black Sea, as well as the technical possibilities of the project.
Today, a terminal is being constructed to process Azerbaijani gas on Georgia's Black Sea coast (SOCAR owns the Kulevi oil terminal). Talks are underway to transport the energy by ship to Romania or Bulgaria for onward dispatch to the domestic gas pipeline network in Europe. The project is considered in two directions - LNG and CNG. The matter deals with 7-20bln cubic meters of gas.
The joint working group was established on the basis of the memorandum signed between SOCAR and Bulgartransgas in November 2009.
The next meeting of the working group will be held in Sofia in late April.
The contract to develop the offshore Shah Deniz field was signed June 4, 1996. Participants to the agreement are: BP (operator) - 25.5 percent, Statoil Hydro - 25.5 percent, NICO - 10 percent, Total - 10 percent, LukAgip - 10 percent, TPAO - 9 percent, SOCAR-10 percent.
Now gas is transported to Georgia and Turkey via the South Caucasus gas pipeline.
It is expected to receive 8.6 - 9 billion cubic meters in the first stage of a project to develop field and in the second stage, peak production forecasted at over 16 billion cubic meters.