TANAP decision important for further development of Shah Deniz field

Azerbaijan, Baku, Dec.28 / Trend, E.Ismayilov /

Companies included in the consortium of the Shah Deniz gas field development in the Azerbaijani sector of the Caspian Sea, expect a final decision on which gas supply route will be built for distribution to Europe, a source in oil and gas market told Trend on Wednesday.

He said making a final decision on the route as soon as possible, is important in terms of the consortium's plan and authorising the second phase of Shah Deniz development and organising work accordingly.

"The companies expect an early adoption of this decision which is important for Azerbaijan," the source said.

Deciding on the route for Azerbaijani gas supplies to Europe may take until the first quarter of 2012, the head of the State Oil Company of Azerbaijan (SOCAR) Rovnag Abdullayev said earlier.

According to the source, a decision on the construction of a new pipeline Trans Anadolu (TANAP), designed to transport Azerbaijani gas from eastern Turkey to western Europe and later to Europe is important from the viewpoint of the implementation of the Shah Deniz second phase.

Earlier Turkey and Azerbaijan signed a Memorandum of Understanding (MoU) to establish a consortium which will construct a gas pipeline to transport gas from the Azerbaijani Shah Deniz field to Europe through the Turkish territory.

The construction of the Trans Anadolu gas pipeline (TANAP) is required for the export of most of the 50 billion cubic metres of gas that Azerbaijan intends to produce in 2025.
All the parties involved in the project intend to resolve issues on this project in 2012. They also plan to start construction immediately in order to complete it by late 2017. The second stage of development of the Azerbaijani Shah Deniz gas condensate field will be launched during that period.

The consortium of the Azerbaijani Shah Deniz gas condensate field development has considered different routes for gas export to Europe, which also include the Southern gas Corridor projects.

The Southern gas Corridor is an EU priority energy project diversifying energy supply routes and sources and increasing EU energy security. It includes the Nabucco gas pipeline, Trans Adriatic Pipeline (TAP) and ITGI (Turkey-Greece-Italy pipeline) projects.

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