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Europe wants to double volumes of gas coming from Azerbaijan (UPDATE)

Oil&Gas Materials 12 February 2015 19:31 (UTC +04:00)
The first meeting of the Southern Gas Corridor Advisory Council discussed the issue of increasing the volumes of Azerbaijani gas supplies to Europe.

Details added (first version posted on 18:38)

Baku Azerbaijan, Feb. 12

By Anakhanim Hidayatova - Trend:

The first meeting of the Southern Gas Corridor Advisory Council discussed the issue of increasing the volumes of Azerbaijani gas supplies to Europe, the European Commission's Vice President in charge of Energy Union Maros Sefcovic told reporters Feb. 12.

"Technologically, the project is capable of delivering 10 billion cubic meters of gas, but this figure can be increased to 20 billion cubic meters. The Shah Deniz field has great potential," said Sefcovic.

He said Turkmenistan too wants to transport gas to the EU, but it is necessary to solve the issue of transporting gas from Turkmenistan to Azerbaijan.

"This implies the technological and legal issues that will need to be addressed," he added.

Southern Gas Corridor is one of the priority energy projects for the EU. This project is aimed at diversification of routes and sources of energy supply and thereby increase EU's energy security.

It envisages the delivery of gas from Azerbaijan's Shah Deniz gas and condensate field to Europe.

A final investment decision was made on Dec.17, 2013 on the Stage 2 of the Shah Deniz offshore gas and condensate field's development. The gas produced at this field will first go to the European market (10 billion cubic meters), while six billion cubic meters of gas will be annually delivered to Turkey.

The contract for development of the Shah Deniz offshore field was signed on June 4, 1996. The field's proven reserve is 1.2 trillion cubic meters of gas and 240 million metric tons of condensate.

As part of the second stage of the field's development, gas will be exported to Turkey and European markets by expanding the South Caucasus Pipeline and the construction of Trans Anatolian (TANAP) and Trans Adriatic (TAP) gas pipelines.

The negotiations of the EU, Azerbaijan and Turkmenistan on the Trans-Caspian gas pipeline began in September 2011.

In July 2013, following high-level talks in Ashgabat, a framework agreement was signed between Turkmenistan and Turkey. The agreement envisaged cooperation in the delivery of Turkmen gas to Turkey and further to Europe.

The project for laying a 300-kilometer gas pipeline along the bottom of the Caspian Sea up to the shores of Azerbaijan is considered to be optimal for the delivery of Turkmen energy resources to the European market. The Turkmen hydrocarbons can subsequently go to Turkey, which shares a border with the European countries.

Turkmenistan believes that its and Azerbaijan's consent is enough to construct a pipeline along the bottom of the Caspian Sea, the legal status of which still needs to be determined.

The project covers the territories of Azerbaijan and Turkmenistan. Azerbaijan said it stands ready to provide its territory, transit opportunities and infrastructure to realize the project.

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