Baku hosts signing ceremony of Shah Deniz -2 gas purchase agreement
Baku, September 19 (AZERTAC). Baku has today hosted the signing ceremony of the Shah Deniz -2 gas purchase agreement.
Addressing to the event, BP-Azerbaijan head Gordon Birrell said that the Shah Deniz -2 gas purchase agreement was a great deal.
"The Shah Deniz -2 gas purchase agreement, the signing of which we witness today, is one of the biggest gas deals in the oil and gas industry. As the Shah Deniz consortium, we are proud to be engaged in that deal," Birrell said.
According to Birrel, the reached agreements underpin 25 years of cooperation on delivering 10 billion cubic meters of gas to be produced within Shah Deniz-2 project to the European consumers.
"Azerbaijan will be a reliable gas supplier to Europe. Shah Deniz will pave the way. First step will be followed by the future opportunities. I would like to congratulate Europe with getting new diversified source of gas," he said.
Delivering a speech at the event, SOCAR President Rovnag Abdullayev noted that the signed agreement will open a new stage in Azerbaijan`s oil and gas industry.
The contracts on the purchase of Azerbaijani gas from the second phase of Shah Deniz field development (Shah Deniz-2 project) were signed with Shell, Bulgar gas, Gas Natural Fenosa, EON, Gaz de France, Hera, Enel, Axpo, DEPA.
Gas to be produced within the Shah Deniz-2 project is the main source for the Trans Adriatic Pipeline (TAP), which in June was selected as a route for transportation of Azerbaijani gas to European markets.
The agreements signed today in Baku are long term gas contracts each for 25 years. The gas sales offers received from buyers were considered alongside the gas transportation offers that have determined the commerciality of the Trans Adriatic Pipeline (TAP) and its respective markets. During the selection process gas sale offers were received for more than double the volume of available gas from more than 15 different gas buyers across Europe.
The gas sales agreements are subject to the final investment decision on Shah Deniz Stage 2 which is planned for late this year. Following the final investment decision it is expected that the first gas will be delivered to Turkey in 2018 and to Europe in 2019.
The reserves of the Shah Deniz field are estimated at 1.2 trillion cubic meters of gas.
The first gas within Shah Deniz-2 project is planned to be obtained by 2018.
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