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Work on creation of infrastructure for Shah Deniz-2 starts

Oil&Gas Materials 29 January 2014 18:59 (UTC +04:00)
Construction work at Sangachal terminal has started within the second phase of development of Azerbaijani gas condensate field Shah Deniz.

Baku, Azerbaijan, Jan. 29

By Emil Ismayilov - Trend:

Construction work at Sangachal terminal has started within the second phase of development of Azerbaijani gas condensate field Shah Deniz, head of BP Azerbaijan Gordon Birrell told journalists on Jan.29.

Additionally, preparatory works have begun in the construction of two compressor stations in Georgia's territory as part of the expansion of the South Caucasus gas pipeline, according to Birrell.

Gas from the second stage of development of the field will be exported to Turkey and the European markets by expanding the South Caucasus gas pipeline and construction of the Trans-Anatolian (TANAP) and Trans-Adriatic (TAP) gas pipelines.

During the Shah Deniz project, annual production of gas will increase from nine billion cubic meters in the first phase to an additional 16 billion cubic meters in the second phase.

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.

The Shah Deniz reserves are estimated at 1.2 trillion cubic meters of gas. Before TAP, which will start on theTurkish-Greece border, the Azerbaijani gas will be delivered to Italy through the territory of Turkey via the Trans-Anatolian gas pipeline (TANAP). Before TANAP, the gas will be delivered via the current 700 kilometer South Caucasus gas pipeline. The capacity of this pipeline will be increased.

Participants in the development of the Shah Deniz field are SOCAR (the State Oil Company of Azerbaijan) with the share of 16.7 percent, the British BP (28.8 percent), Norway's Statoil (15.5 percent), Iran's NICO (10 percent) , French Total (10 percent), Russia's Lukoil (10 percent), Turkish TPAO (9 percent).

The cost of the Shah Deniz-2 project is estimated at over $25 billion.

Translated by L.Z.

Edited by C.N.

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