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New gas field discovery in Azerbaijan increases relevance of Southern Gas Corridor

Analysis Materials 10 September 2011 00:00 (UTC +04:00)
New gas field discovery in Azerbaijan increases relevance of Southern Gas Corridor
New gas field discovery in Azerbaijan increases relevance of Southern Gas Corridor

Azerbaijan, Baku, Sept. 9 / Trend /

Azer Ahmadbayli, an expert of Trend analytical center

The results of drilling of appraisal well X-2 in the Azerbaijani offshore gas condensate field Absheron confirmed the presence of significant gas reserves there. The results of drilling have emphasized again the relevance of the Southern Gas Corridor route. The more reserves are found, the more obvious becomes a need for the construction of new pipelines, which is important both for Azerbaijan and Europe. The Europeans need it in the light of many factors, main of them being:

- Increase in energy demand after the economic crisis in Europe

- Partial or complete rejection of nuclear power

- Capital-intensive production of alternative energy sources.

All these factors greatly increase the value of Azerbaijani natural gas to the European market.
The country needs to consider various options, because in 2020-25 the gas production in the country will reach 50-55 billion cubic meters per year as a result of further development of promising structures and fields.

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