Minister: Capacity of gas pipeline to supply Azerbaijani gas to Europe to increase significantly
Azerbaijan, Baku, April 24 / Trend, H.Veliyev /
Capacity of the South Caucasus gas pipeline (Baku-Tbilisi-Erzurum) will be increased up to 30 billion cubic meters per year for transportation of gas within the second phase of the Shah Deniz field development, Azerbaijani Industry and Energy Minister Natig Aliyev told journalists on Tuesday.
"However, the pipeline can be expanded up to 35-37 billion cubic meters of gas per year," Aliyev said.
He said increasing gas pipeline capacity is first necessary for transportation of an additional 16 billion cubic meters of gas from the Shah Deniz second stage in addition to nine billion. If necessary, the pipeline can be expanded even further by up to 55 billion cubic meters of gas per year.
Last week, BP announced about commencing Front End Engineering and Design (FEED) on the Shah Deniz Stage 2 project.
The Shah Deniz 2 project is set to produce 16 billion cubic metres of gas per year. The entry into FEED represents the start of a key phase in the project during which engineering studies will be refined, further wells drilled and commercial agreements will be finalised and key construction contracts commence, BP said.
During the FEED phase of the project the Shah Deniz consortium will finalise its selection of export routes across Turkey and into Europe.Gas reserves are estimated at 1.2 trillion cubic meters.
The contract to develop the offshore Shah Deniz field was signed on June 4, 1996. Participants to the agreement are: BP (operator) - 25.5 per cent, Statoil - 25.5 per cent, NICO - 10 per cent, Total - 10 per cent, LukAgip - 10 per cent, TPAO - nine per cent and SOCAR-10 per cent.