Azerbaijan, Baku, Aug.1 / Trend /
Azerbaijan would prefer a smaller pipeline that could later be expanded for gas transportation to Europe, the Wall Street Journal quoted SOCAR Vice President Elshad Nassirov as saying.
"We don't want to have a deal to pay for capacity we don't need," he said.
Nassirov said the company is considering becoming a shareholder, which will be selected for its gas transportation.
By Oct. 1, the partners in the development of the Azerbaijani Shah Deniz gas condensate field will expect proposals from various projects to supply Azerbaijani gas to Europe.
The South Corridor projects are priority projects. The corridor is a priority energy project for the EU.
It is designed to diversify energy supply routes and sources and increase EU energy security. The Southern Corridor includes the Nabucco gas pipeline, Trans Adriatic Pipeline, White Stream, and ITGI.
However, Nabucco is designed to carry 31 billion cubic meters of gas, and two-thirds of the pipeline will likely remain empty until another supplier can fill the gap. This can lead to high tariffs for pumping.
Two other routes have a third of initial capacity with is a possibility of expansion in the future.
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 - 25.5 percent, NICO - 10 percent, Total - 10 percent, LukAgip - 10 percent, TPAO - 9 percent, SOCAR-10 percent.
Shah Deniz proven reserves are estimated at an amount of 1.2 trillion cubic meters of gas and 240 million tons of condensate.
Gas is being transported to Georgia and Turkey via the South Caucasus Pipeline.