SOCAR, Snam to study development of renewable gases, use of sustainable energy
BAKU, Azerbaijan, Feb. 20
By Leman Zeynalova – Trend:
Italy’s Snam company and Azerbaijan’s state oil company SOCAR have signed a cooperation agreement today to study the development of renewable gases and use of sustainable energy, with a view to their delivery through the Southern Gas Corridor including Trans Adriatic Pipeline (TAP) in the future, Trend reports citing Snam.
The agreement between Snam and SOCAR involves collaboration in the areas relating to the energy transition and circular economy: 1) researching and promoting the use of biogas and biomethane, including the potential creation of anaerobic digestion plants. The expertise of Snam’s subsidiary, IES Biogas, can be applied for the design and construction of these plants. Snam and SOCAR plan to evaluate potential co-investment opportunities in this regard; 2) promoting sustainable mobility using compressed natural gas (CNG), liquefied natural gas (LNG) and hydrogen (H2), through the development of new distribution stations, potentially involving Snam’s subsidiary, Cubogas. There is also the possibility of launching partnerships with car manufacturers and developing the retrofit market; 3) studying the opportunities for developing hydrogen production and related infrastructure.
Marco Alverà, Snam’s CEO, said that through this project, Snam and SOCAR aim to contribute to the energy transition and circular economy in Azerbaijan, strengthening collaboration between our two countries. Furthermore, the development of biomethane and hydrogen could offer new opportunities for the delivery of renewable gases through the Southern Gas Corridor and the TAP pipeline, thereby improving environmental sustainability alongside security and flexibility of supply”.
Rovnag Abdullayev, SOCAR’s president, said that SOCAR has been taking significant steps in its operations to minimize negative impact on the environment. “The cooperation agreement signed today is an important step towards sustainability in the energy industry, aimed at development of a greener economy and to curb global warming, in order to sustain life and prosperity”.
The Southern Gas Corridor comprises the following four projects: (i) operation of Shah Deniz natural gas-condensate field ("SD1" project) and its full-field development ("SD2'" project), (ii) the operation of the South Caucasus Pipeline ("SCP" project) and its expansion ("SCPX" project), (iii) the construction of the Trans-Anatolian Natural Gas Pipeline ("TANAP" project) and (iv) the construction of the Trans Adriatic Pipeline ("TAP" project) (SD2, SCPX, TANAP and TAP collectively, the "Projects").
The Projects have an estimated investment cost of approximately $40 billion. Upon completion, the SD2 project will add a further 16 bcm of natural gas per annum to 10.9 bcma (maximum production capacity) already produced under SD1 project.
Total length of the newly constructed SCPX, TANAP and TAP pipelines will be more than 3,200 kilometres.
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