Baku, Azerbaijan, Feb.2
By Leman Zeynalova – Trend:
The Southern Gas Corridor (SGC) project is on right track, Ruseckas Laurent, senior adviser to the Global Gas team in the London-based IHS Markit said in an interview with Azernews.
If you go back for a couple of years, everyone in the oil and gas industry was talking about how mega projects are disastrous, the expert noted drawing Kashagan field as an example of such a giant project, as well as the Gorgon gas project in Australia.
“At the beginning of Shah Deniz, a lot of people were thinking the same. However, it never happened. It’s been almost perfect,” Laurent noted.
Commenting on the rising demand for gas in Europe, the expert talked about additional sources of gas for SGC.
“It is expected that about 10 billion cubic meters of Azerbaijani gas will be delivered to EU member states and 6 bcm to Turkey,” he said.
As for additional sources, the expert said there are some talks about Turkmen, Iranian, Israeli and Iraqi gas supplies.
“I don’t think any of them is very likely, at least not in the next two years. The most likely option is to supply extra gas from Azerbaijani fields, for example from Absheron,” he noted.
It is difficult to take big investment decisions when the prices are as low as they are today, according to Laurent.
The expert further highlighted that TurkStream project, which was agreed upon by Russia and Turkey, has nothing to do with the SGC.
“It is just to bypass Ukraine, basically, delivering gas to the same market,” he said.
Laurent noted that all long-term contracts have been signed with buyers who guarantee to purchase gas from Shah Deniz 2.
Whatever happens, the SGC project will not be affected, he concluded.
The Southern Gas Corridor, worth $41.5 billion, is considered as one of the priority energy projects for the EU, which strives for diversification of gas supplies. The project envisages the transportation of gas from the Caspian region to the European countries through Georgia and Turkey.
At the initial stage, the gas to be produced as part of the Stage 2 of development of Azerbaijan's Shah Deniz field is considered as the main source for the Southern Gas Corridor projects. Other sources can also connect to this project at a later stage.
As part of the Stage 2 of the Shah Deniz development, the gas will be exported to Turkey and European markets by expanding the South Caucasus Pipeline and the construction of Trans Anatolian Natural Gas Pipeline and Trans Adriatic Pipeline.
The first gas within the Shah Deniz-2 project will be delivered to Turkey in 2018, and to Europe in 2019.
---
Follow the author on Twitter: @Lyaman_Zeyn