Baku, Azerbaijan, Dec.16
By Emil Ismayilov - Trend:
The implementation of the Shah Deniz-2 project will ensure the entry of Azerbaijani gas to Europe, Azerbaijani Energy Minister Natig Aliyev told journalists on Dec.16.
"This in turn will allow an increase in the country's significance for Georgia, Turkey, Albania, Greece and Italy," the minister said.
The implementation of the second phase of Shah Deniz will also create opportunities for the entry of gas from other fields and prospective structures of Azerbaijan such as Absheron, Umid, Babek and others, according to Aliyev.
The implementation of the project envisages the creation of a new infrastructure, use of new technology and opening of new work places ensuring an even brighter future for the country, Aliyev said.
The final investment decision on the Shah Deniz -2 project will be adopted on Dec.17 in Baku.
The contract to develop the offshore Shah Deniz field was signed on June 4, 1996.
Participants to the agreement are: BP (operator) - 25.5 percent, Statoil - 25.5 percent, NICO - 10 percent, Total - 10 percent, Lukoil - 10 percent, TPAO - nine percent and SOCAR - 10 percent.
Shah Deniz reserves are estimated at 1.2 trillion cubic meters of gas.
The cost of the second phase of development of Shah Deniz gas condensate field is estimated at $25 billion.
Within the second phase of development it is planned to produce some 16 billion cubic meters of gas (within the first phase - 9 billion), six billion of which will be transported to Turkey and ten billion to Europe.
A consortium of Azerbaijani Shah Deniz gas condensate field development announced its choice of the TAP project in late June, as a gas transportation route to the European markets.
The initial capacity of the TAP pipeline will be 10 billion cubic meters per year with the possibility of expanding to 20 billion cubic meters per year. Trans-Anatolian (TANAP) gas pipeline will be constructed for transportation of gas through Turkey's territory.
Translated by L.Z.
Edited by S.M.