9 Mart 2011 Çarşamba

One more gas pipeline to be built for Shah Deniz gas transportation

Rufat ABBASOV     News.Az
There is a plan to lay an additional pipeline on par with existing South Caucasus gas corridor. 
Existing or new infrastructure will be used to transport Azerbaijani gas produced within the framework of Stage 2 of the Shah Deniz field development, according to the report of BP-Azerbaijan for 2010.

The report says the company is currently evaluating all existing variants and defining the route meeting all demands of the concerned parties. “A negotiation export group from among the representatives of BP, SOCAR, Statoil and Total was created to negotiate with Turkish and European gas consumers”, the report says.

Earlier, the president of BP-Azerbaijan Rashid Javanshir said there is a need to expand existing transport infrastructure to ensure export of gas within the framework of the second phase of the Shah Deniz field development.

“There is a plan to lay an additional pipeline on par with existing South Caucasus gas corridor. This will help raise the capacity of the system to transport gas from current 8bn cubic meters a year to 24bn cubic meters”, he said.

He said the parallel pipeline extending to 400 km will be built in the territory of Azerbaijan, while gas compressor stations to raise the capacity will be in Georgia.

“This variant is most acceptable, since the relief by which the pipeline is laid in Azerbaijan allows building the second gas pipeline, while in the Georgian territory the landscape is very complex and it is easier to build a gas compressor station there. Considering the fact that the South Caucasus Pipeline construction took $1bn, while the second stage envisioned the triple increase in gas transportation, the funds for enlargement may hit $3bn”, he said.

The production sharing agreement includes BP (operator – 25.5%), Statoil (25.5%), SOCAR (10%), LUKOIL (10%), NICO (10%), Total (10%) and TPAO (9%).


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