Today.Az » Business » South Caucasus gas pipeline to be expanded by end of 2013
20 April 2013 [08:25] - Today.Az
The operation of expanding the South Caucasus gas pipeline (Baku-Tbilisi-Erzurum) will begin after the final investment decision on the second phase of developing the offhore Azerbaijani gas condensate field "Shah-Deniz" is made, top manager of the Azerbaijan Gas Supply Company, operated by Norwegian Statoil, Per Johan Bugge told media today.
"The final investment decision can be made in October 2013," Bugge said.
At present, the negotiations are underway with buyers in the markets. Two pipeline projects for Azerbaijani gas supplies to Europe focused on them.
"The matter rests in the Trans Adriatic Pipeline (TAP) and Nabucco West gas pipeline," Bugge said.
As for gas prices, Bugge stressed that at present, the prices are greatly connected with the prices of receiving large gas hubs in Europe within the long-term contracts due to liquidity.
Russian gas prices are connected with the oil prices, he added.
Expanding the South Caucasus gas pipeline, which is part of the Baku-Tbilisi-Erzurum gas pipeline will allow Azerbaijan to deliver additional volumes of gas from the Shah Deniz field in the Caspian Sea.
In 2012, the average capacity of the gas pipeline amounted to 11.1 million cubic meters, or 68,000 barrels in oil equivalent.
The length of the Baku-Tbilisi-Erzurum gas pipeline (South Caucasus Pipeline) exceeds 700 kilometers. The gas produced from the Shah Deniz field in the Azerbaijani sector of the Caspian Sea is transported via the pipeline. Azerbaijan is also a buyer of gas.
/Trend/
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