Italy's Edison to buy gas from Azerbaijan's Shah Deniz (PHOTO)

Oil&Gas Materials 18 April 2018 20:01 (UTC +04:00)

Baku, Azerbaijan, April 18

By Azad Hasanli - Trend:

Spain's Gas Natural Fenosa has transferred its obligations under the deal on gas sale within the Shah Deniz 2 project to the Italian company Edison, Azerbaijan's state oil company SOCAR said in a message on April 18.

The signing ceremony for transfer of obligations at SOCAR Tower in Baku was attended by representatives of SOCAR, Azerbaijan Gas Supply Company (AGSC), Edison, and Gas Natural Fenosa.

Edison got the right to supply gas within the Shah Deniz 2 project for a period of 25 years. The gas supplies will be launched in 2020 after construction of the Trans Adriatic Pipeline (TAP) is completed.

This step is part of a major agreement on purchase of the Gas Natural Vendita Italia gas distribution network by Edison. The transfer of the right to sell gas from the Shah Deniz 2 from Gas Natural Fenosa to Edison is one of the key conditions of this deal.

As part of the Shah Deniz 2 project, gas production will increase from 9 to 25 billion cubic meters per year. The produced gas will be exported to Turkey and the European markets through the expansion of the South Caucasus Pipeline and the construction of the Trans-Anatolian (TANAP) and Trans-Adriatic (TAP) gas pipelines.

A contract for development of the Shah Deniz offshore field was signed on June 4, 1996. The field's reserve is estimated at 1.2 trillion cubic meters of gas.

The shareholders in the contract are: BP, operator (28.8 percent), AzSD (10 percent), SGC Upstream (6.7 percent), Petronas (15.5 percent), Lukoil (10 percent), NICO (10 percent) and TPAO (19 percent).