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Azerbaijan Reduces Gas Export to Georgia

Oil&Gas Materials 20 April 2007 14:13 (UTC +04:00)
Azerbaijan Reduces Gas Export to   Georgia

Azerbaijan, Baku / corr. Trend S.Aliyev / Azerbaijan has cut its delivery of Shah Deniz gas to Georgia via the South Caucasus gas pipeline to 1.8mln cu m.

The Azerbaijan government reported the gas supply will be cut within the next few days.

From 16 April Azerbaijan will increase Shah Deniz gas delivery to Georgia via the South-Caucasus gas pipeline. This volume was delivered at the expense of the rest of the month. In general, Georgia has received 30mln cu m of gas during this period.

The guaranteed volume of gas, which Georgia is to receive from Shah-Deniz at the price of $63 per 1,000 cu m of gas, will reach 250 mln. cu m in 2007. Any additional gas and their prices are subject to further negotiations between Azerbaijan and Georgia.

Over the first quarter of 2007 gas production from the Shah Deniz field was 172.25mln cu m of gas, or 235 more than forecasted. In March gas production made was 115.34mln cu m of gas.

The production from the only operative well on the field was equal to 5.1mln cu m of gas and 12,000 barrels of condensate a day.

At the plateau stage, 8.6bln cu m of gas is expected to be produced within the first stage of the development of the "Shah-Deniz" field. By 2007, it is expected that the field will produce 5.4-5.6bln cu m.

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