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Minister: Turkey to get 6 billion cubic meters of gas per year from second stag of Shah Deniz project

Oil&Gas Materials 7 June 2010 18:42
Turkey will buy 6 billion cubic meters of Azerbaijani gas annually within the second stage of the development of gas-condensate field Shah Deniz in the Azerbaijani sector of the Caspian Sea, Turkish Minister of Energy and Natural Resources Taner Yildiz said live on Turkish CNN Turk channel as a result of signing of a package of gas agreements between Turkey and Azerbaijan.
Minister: Turkey to get 6 billion cubic meters of gas per year from second stag of Shah Deniz project

Azerbaijan, Baku, June 7 / Trend /

Turkey will buy 6 billion cubic meters of Azerbaijani gas annually within the second stage of the development of gas-condensate field Shah Deniz in the Azerbaijani sector of the Caspian Sea, Turkish Minister of Energy and Natural Resources Taner Yildiz said live on Turkish CNN Turk channel as a result of signing of a package of gas agreements between Turkey and Azerbaijan.

He said that it is expected to get gas within the second phase of Shah Deniz field in 2017-2018, respectively.

The minister said that it is expected to receive 13.5 billion cubic meters of gas within the second phase of Shah Deniz field.

"This means that the gas within the second stage can be a source for such projects as Nabucco, ITGI (Turkey-Greece-Italy) and TAP (Trans-Adriatic gas pipeline). As you know, we are participants in the Nabucco and interested in this process," the minister said.

Depending on the market, the prices for Azerbaijani gas will change, Yildiz said.

He has not specified the cost of Azerbaijani gas, because, it might affect the sale of gas to other buyers.

The minister said that the cost of Azerbaijani gas will be more acceptable compared to the price for Russian gas.

Azerbaijan and Turkey have signed an agreement on a package of gas issues in Istanbul today.

The agreement involves a change in prices for Azerbaijani gas for Turkey in the first stage of gas-condensate field Shah Deniz, gas prices under the second phase of the project, as well as the transit of Azerbaijani gas through Turkey to Europe.

The contract to develop the offshore field Shah Deniz was signed June 4, 1996. Members of the agreement are: BP (operator) - 25,5 percent, Statoil - 25,5 percent, NICO - 10 percent, Total - 10 percent, LUKOIL - 10 percent, TPAO - 9 percent, SOCAR - 10 percent. Shares of Shah Deniz field are estimated at 1.2 trillion cubic meters of gas.

A peak production from the field within the first stage of development is projected at 8,6-9 billion cubic meters. According to the forecasts, gas production will be increased by another 16 billion cubic meters per year within the second stage of development of the field.

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