BAKU, Azerbaijan, Feb.4. Shah Deniz and the Southern Gas Corridor (SGC) are clearly today’s, but also tomorrow’s top story, said Gary Jones, bp regional president Azerbaijan-Georgia-Türkiye, Trend reports.
He was addressing the 9th Ministerial Meeting of the Southern Gas Corridor Advisory Council held Feb.3 in Baku.
“The world needs energy that is secure, affordable and lower carbon. This makes the role of the projects like SGC and Shah Deniz grow even more. As they help address all three of those needs. Shah Deniz and SGC are clearly today’s, but also tomorrow’s top story. There are significant expansion opportunities for both projects. Now, that there is so much demand for gas supply, this expansion has become even more critical. SGC is designed as scalable so that its initial throughput capacity can be expanded if and when needed. We are currently working with SOCAR and other partners to see how we can use this to increase gas supplies to Europe,” said Gary Jones.
Moreover, the regional director said bp is looking at the potential new sources of gas.
“We have just spudded an exploration well on Shah Deniz to look for more gas beneath the currently producing horizons. We have also started an appraisal well from Chirag – ACG’s very first platform - to explore the deep gas reservoirs under the producing oil field. In parallel, we are evaluating how we can electrify our operations instead of powering them using gas. The electrification of the Sangachal terminal could be a good start. Replacing the Sangachal gas turbines with grid access would allow us to export the displaced gas through SGC. Both Shah Deniz and SGC can further contribute to the energy transition and security of supply,” noted Jones.
bp’s regional director pointed out that Azerbaijan has vast potential and strategic plans on boosting gas supplies through SGC.
“We have been privileged and proud to develop and operate the country’s major energy projects over the last 30 years, hand in hand with SOCAR and other co-venturers. Now, as the long-term and reliable partner, we are ready to continue supporting the country as it realizes its plans for SGC,” he added.
Southern Gas Corridor started transportation of Azerbaijani gas to Europe on December 31, 2020. It transports of gas from the Caspian Sea region to European countries through Georgia and Türkiye.
This large-scale project is aimed at diversification of energy supply routes and sources, thereby contributing to strengthening Europe’s energy security. The project’s cost totaled $33 billion, as compared to the forecast $45 billion. Capital expenditures on the SGC project are expected to be fully reimbursed within 8-10 years.
Azerbaijan's export of natural gas to European Union market will stand at 11.6 billion cubic meters as of 2023. Total export of natural gas from Azerbaijan this year will be almost 24.5 billion cubic meters.
---
Follow the author on Twitter: @Lyaman_Zeyn