AGRI project participants agree on volume of operations

Oil&Gas Materials 18 July 2011 17:03 (UTC +04:00)

Azerbaijan, Baku, July 18 / Trend E.Ismayilov /

Participants of the Azerbaijan-Georgia-Romania Interconnector (AGRI) pipeline project agree on the volume of work that should be considered while preparing the feasibility study of the project. The project provides for deliveries of Azerbaijani liquefied gas through the Black Sea coast of Georgia to Romania.

"The tender has not been announced to choose the company, which will prepare a feasibility study," he said. "At present, the volume of the work is under coordination."

He said that the tender will be announced after all necessary work is approved.

All companies-participants of the project are willing to finance the preparation of the feasibility study, SOCAR's senior representative said.

The amount of funds required to prepare the feasibility study, will be known after the submission of proposals to the design company that will won a tender to be announced soon.

Earlier, the joint venture was registered in Romania within the AGRI project. The joint company will prepare a feasibility study of the new project before seeking funding. Participants of the project are Azerbaijani SOCAR, Oil and Gas Corporation of Georgia, the Romanian ROMGAZ and Hungarian MVM. Each participating country holds a 25 percent share. A future project partner may be Bulgaria.

The AGRI project envisages transporting Azerbaijani gas via pipelines to the Black Sea coast of Georgia, where the gas will be liquefied at a special terminal. The gas will then be delivered to a terminal at the Romanian port of Constanta using tankers. Later, the liquefied gas will be brought into the state of natural gas and directed towards covering the needs of Romania and other European countries.

It is expected that Turkmenistan, by participating in the project as a supplier, could supply liquefied natural gas across the Caspian Sea to Azerbaijan for further transit to Europe.
The cost of the AGRI project can vary from 1.2 billion to 4.5 billion euros.