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Southern Gas Corridor’s expansion to depend on firm market demand

Oil&Gas Materials 17 May 2021 09:38 (UTC +04:00)
Southern Gas Corridor’s expansion to depend on firm market demand

BAKU, Azerbaijan, May 17

By Leman Zeynalova – Trend:

Southern Gas Corridor’s expansion to depend on firm market demand, the European Commission told Trend.

Currently it will be premature to comment on which sources would be suitable for this expansion, as it will depend on a wide range of factors, said the EU Commission.

“Whether or not the Southern Gas Corridor will still be extended in the future will depend on firm market demand and the reaction to binding market tests. The TAP Consortium foresees a binding market test already by this summer, depending on the outcome additional gas volumes from the Caspian sea could be transported via the SGC,” said the organization.

BP Azerbaijan told Trend that the estimation of gas initially in place of the whole Shah Deniz field is approximately 1 trillion cubic meters.

“Shah Deniz 2 focuses on the remaining resource potential in the reservoir intervals which have been producing since 2006 and will add up to 16 billion cubic meters of gas per year to the overall Shah Deniz production,” said the company.

Azerbaijan’s state oil company SOCAR has expressed readiness to share the capacity of the Southern Gas Corridor with Turkmenistan, said earlier SOCAR’s President Rovnag Abdullayev.

The Southern Gas Corridor, which is comprised of Shah Deniz 2, the South Caucasus Pipeline Expansion, the Trans Anatolian Natural Gas Pipeline (TANAP), and the Trans Adriatic Pipeline (TAP) became fully operational on December 31, 2020.

Trans Adriatic Pipeline (TAP) AG confirmed on Dec. 31 the commencement of gas flows from Azerbaijan. The first gas has reached Greece and Bulgaria, via the Nea Mesimvria interconnection point with DESFA, as well as Italy, via the Melendugno interconnection point with SNAM Rete Gas (SRG).

TAP transports natural gas from the giant Shah Deniz field in the Azerbaijan sector of the Caspian Sea to Europe. The 878 km long pipeline connects with the Trans Anatolian Pipeline (TANAP) at the Turkish-Greek border in Kipoi, crosses Greece and Albania and the Adriatic Sea, before coming ashore in Southern Italy.
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