Utilization of the associated gas, extracted together with oil produced from Shallow Water Gunashli field, where the State Oil Company carries out oil and gas operations at own expense, will start in 2007, the Ministry of Industry and Energy told Trend.
The project will be implemented under the State Program on development of fuel and energy complex of Azerbaijan in 2005-2015. The gas utilization will enable to provide gas supply to settlements and maintain the ecology.
At present 1.6 million cu m of gas a day is thrown to the atmosphere. The volume of gas leakage from Chirag field, operated by BP, comprise 800,000 cu m a day.
On 10 November the SOCAR and the World Р'ank signed a agreement on $481,250 Japanese grant for the development of a project on utilization of associated gas lifted from Gunashli field. The rant will be directed at development of programs on attraction of investments for utilization of the associated gas.
Japan Oil Engineering Co is rendering consultative services to SOCAR on expedient use of the associated gas. It is also involved in preventing the loss of gas, more economic and effective use of the вЂ�blue fuelвЂ™ in the power stations.