Baku, Azerbaijan, Oct. 11
By Emil Ismayilov - Trend:
Bulgaria must decide on a place for receiving Azerbaijani gas within the Stage 2 of the Shah Deniz gas and condensate field's development before end of the Trans Adriatic Pipeline's (TAP) construction, Azerbaijani State Oil Company (SOCAR) President Rovnag Abdullayev told reporters Oct. 11.
He said the Bulgargaz, Bulgaria's largest natural gas distribution company, signed a contract to purchase 1 billion cubic meters of gas within the Shah Deniz project, and it should make a decision by late 2019 on the place where it will be receiving the gas - either on the border with Turkey or Italy.
Responding to a question regarding the Bulgarian side's willingness to obtain the gas before the start of main supplies, Abdullayev said that to this end there should be technical possibilities, and the issue needs to be addressed.
SOCAR and Bulgargaz inked a protocol of intentions and a memorandum of understanding in Sept. 2014.
Previously, it was reported that Bulgaria is planning to start buying Azerbaijan's gas from 2016. It is expected that a final investment decision will be made in autumn 2014 to construct a gas grid interconnector between Greece and Bulgaria.
On Dec. 17, 2013 a final investment decision was made on Stage 2 of the Shah Deniz offshore gas and condensate field's development. The field's proven gas reserve is estimated at 1.2 trillion cubic meters.
The gas to be produced as part of the Stage 2 of the field's development will be exported to Turkey and to the European markets by means of expanding the South Caucasus Pipeline and construction of the Trans Anatolian Gas Pipeline (TANAP) and the Trans Adriatic Pipeline (TAP).
In Sept. 2013, the consortium for development of the Shah Deniz gas and condensate field in the Azerbaijani sector of the Caspian Sea signed long-term contracts (for 25 years) with nine European companies for the supply of gas.
The contracts for the purchase of gas from the Stage 2 of the Shah Deniz field's development were signed in Baku with Shell, Bulgargaz, DEPA, Gas Natural Fenosa, EON, Gaz de France, Hera, Enel, Axpo.
The first volumes of gas will be delivered to Turkey in 2018, and in 2019 - to Europe.