Telavi, Georgia, Dec.19
By Emil Ismayilov - Trend:
The implementation of the second phase of development of the Shah Deniz gas condensate field in the Azerbaijani sector of the Caspian Sea will contribute to the region's economic development, Georgian Deputy Minister for European and Euro-Atlantic Integration Mariam Rakviashvili said on Dec.19 at a regional conference titled 'The way to strengthening Eastern Partnership territorial cooperation: Azerbaijan-Georgia territorial cooperation programme'.
Shah Deniz-2 is a very large project and its implementation will contribute to the strengthening of cooperation between Azerbaijan and Georgia, especially in the sphere of energy, according to Rakviashvili.
The two countries actively cooperate within large energy projects such as the Baku-Tbilisi-Ceyhan oil pipeline and Baku-Tbilisi-Erzurum gas pipeline, Deputy Head of Department on Cooperation with International Organisations of the Azerbaijani Ministry of Economy and Industry, Ruslan Rustamli said at the event.
In turn, the implementation of the Shah Deniz-2 project will strengthen cooperation between the countries in the sphere of energy and ensure the supply of Azerbaijani gas to Europe through Georgia's territory.
The final investment decision on Shah Deniz-2 project was adopted in Baku on Dec.17.
Shah Deniz-2 project authorization means the transition of the project from the concept into an immediate implementation stage.
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, six billion of which will be transported to Turkey and ten billion to Europe.
The 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.
Azerbaijan and Georgia also work in other spheres of the economy and a striking example of this is the transport sector with the Baku-Tbilisi-Kars railway project which will contribute to the development of the Asia-Europe route, Rustamli said.
It is expected that the construction of the Baku - Tbilisi - Kars (BTK) railway, which is one of the most important parts of the Caspian transit corridor, will be completed in 2014. In the first stage it will be able to carry one million passengers and 6.5 million tons of cargo.
Future capacity of the BTK will increase to three million passengers and 20 million tons of cargo.
The total length of the BTK is 826 kilometers (about 513 miles). After commissioning of the railway mutual trade between Azerbaijan, Georgia and Turkey will increase significantly, the total volume will exceed $ 10 billion per year.
Translated by L.Z.
Edited by S.M.