TODAY.AZ / Business

Shah Deniz gas exports grow

23 August 2019 [10:39] - TODAY.AZ

By Azernews

By Leman Mammadova

Shah Deniz Stage 2, one of the largest gas developments in the world, will help increase European energy security by bringing Caspian gas resources to markets in Europe for the very first time.

Azerbaijan exported 5.8 billion cubic meters of gas from Shah Deniz field in January-July 2019. This is 34.7 percent more than in the same period last year, State Statistical Committee said in a message.

Gas exports from the Shah Deniz field accounted for 36.3 percent of all gas transported through gas pipelines in the reporting period.

In general, Azerbaijan’s gas pipelines transported 16 billion cubic meters of gas in the first seven months of 2019, which is 20.3 percent more than in the same period in 2018.

Azerbaijan’s gas export from Shah Deniz totaled 8.4 billion cubic meters in 2018. It is forecast that production at the Shah Deniz field will reach 17.39 billion cubic meters of gas in 2019. In 2018, BP produced 11.5 billion cubic meters of gas and 2.5 million tons of condensate from the Shah Deniz field.

Currently, gas production from the Shah Deniz field is carried out from the Alfa platform as part of Stage 1 and from the Bravo platform as part of Stage 2.

Shah Deniz field covers approximately 860 square kilometers. The field was discovered in 1999. Shah Deniz is a giant gas condensate field, reserves of which are estimated at 1.2 trillion cubic meters of gas and 240 million tons of condensates.

Within the second stage of field development, the volume of gas production can be increased to 24 billion cubic meters per year, according to forecasts.

The discovery of the giant Shah Deniz field and the successful implementation of the project made Azerbaijan a country that can export a large amount of natural gas to the world.

The Shah Deniz gas field is still the biggest discovery of BP after the Prudhoe Bay oilfield in Alaska. SOFAZ (Azerbaijani Oil Fund) has so far earned $ 2.5 billion from the development of Shah Deniz.

The agreement on the exploration, development and shared production of promising areas of Shah Deniz was signed on June 4, 1996. The agreement on the division of production was ratified on October 17, 1996.

The project participants are BP (operator - 28.8 percent), AzSD (10 percent), SGC Upstream (6.7 percent), Petronas (15.5 percent), LUKOIL (10 percent), N?KO (10 percent) and TPAO (19 percent).

Shah Deniz 2 is the starting point of the new Southern Gas Corridor, which will deliver Caspian resources directly to European markets for the first time, through Italy, Georgia, Turkey, Greece, Bulgaria, Albania and the seabed of the Adriatic Sea.

The Southern Gas Corridor, a $40 billion worth project, envisages the transportation of gas to Turkey and Europe through the pipeline, which will be operated within the second stage of the Shah Deniz gas condensate field project in the Azerbaijani sector of the Caspian Sea.

URL: http://www.today.az/news/business/185647.html

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