Cooperation in hydrocarbon trade, exports in Caspian region in focus of SOCAR forum
By Kamila Aliyeva
The second SOCAR International Caspian and Central Asia Downstream Forum – Trading, Logistics, Refining, Petrochemicals continued its work on April 26.
First Deputy Head of the Gas Export Department of SOCAR, Nazim Samadzade, addressing today’s session, said that annual production of marketable gas in Azerbaijan will reach 40 billion cubic meters by 2025.
Samadzade added that “some 800 million cubic meters of Shahdeniz gas are exported to Georgia, while 6.6 billion cubic meters to Turkey and 1.5 billion cubic meters are consumed in the country.”
He noted that Azerbaijan’s proved gas reserves make up 2.5 trillion cubic meters.
The major part of oil and gas produced in Azerbaijan, accounts for the ACG block of oil and gas fields and the Shah Deniz gas and condensate field developed by SOCAR jointly with foreign partners.
Samadzade, talking to reporters on the sidelines of the event, said that SOCAR can supply Georgia an additional three million cubic meters of gas per day.
"At present, SOCAR supplies seven million cubic meters of gas to Georgia daily. In 2016, as a result of repair works on the Hajigabul-Gazah-Gardabani gas pipeline, it was possible to increase the daily throughput capacity of the pipeline to 10 million cubic meters of gas, therefore, we are able to supply Georgia an additional three million cubic meters of gas a day, "he added.
Analyst of the Georgian Oil and Gas Corporation Liana Dzhervalidze, who also attended the event, stated that Georgia increased the purchase of Azerbaijani gas to 2.156 billion cubic meters in 2016.
Deliveries of ‘social’ gas from Azerbaijan amounted to 1.4 billion cubic meters, the rest was commercial supplies.
In addition, 250 million cubic meters of gas were supplied to Georgia from Russia, including 185 million cubic meters as payment for the transit of Russian gas to Armenia and 66 million cubic meters of commercial gas.
Dzhervalidze recalled that Georgia has moved to a new system of mutual settlements with Gazprom Company for Russian gas transits since 2017. Some 50 percent of the transit will be paid by gas [10 percent of this amount will be transferred to Georgia as transit payments], and the remaining 50 percent will be paid in cash.
Dzhervalidze noted that Georgia will have the opportunity to purchase Russian commercial gas during periods of peak consumption if an emergency situation occurs, or if the volume of supplies from Azerbaijan is insufficient.
At the same time, according to the analyst, Georgia is not obligated to purchase certain volumes from Gazprom, which is beneficial for the country.
She reminded that Azerbaijan's state oil company SOCAR is the strategic gas supplier to Georgia saying that long-term contracts for gas supplies to Georgia were signed with SOCAR until 2028.
She also added that SOCAR Georgia Gas, a subsidiary of SOCAR, invested about $1 billion in Georgia within 10 years.
Head of the Project and Investment Development Department of SOCAR Trading (trading house of the Azerbaijani state-owned SOCAR) Togrul Kocharli, in his turn, informed about the launch of construction of an LNG regasification terminal in Côte d'Ivoire at the end of this year.
He added that the LNG complex was officially opened in Malta on April 24.
“As part of this project, we built a regasification unit that converts liquefied gas back into natural gas,” he added. “We built a power plant with a capacity of 210 megawatt, which will allow meeting up to 40 percent of Malta’s electricity demand."
Moreover, SOCAR Trading guaranteed the same price for gas and electricity during five years under a contract signed for a period of 18 years, Kocharli said.
Kocharli said that currently about a quarter of the world's energy needs account for natural gas and 10 percent - for liquefied gas.
"The LNG market began to grow especially after LNG was exported from the US and Australia," Kocharli added.
SOCAR Trading SA, which this year commissioned the ambitious integrated LNG-to-power project in Malta, expects to agree deals for similar projects elsewhere in the world in the coming years
Speaking at the event, Deputy General Director for Projects and Maintenance of Petkim Petrokimya Holding Bilal Guliyev said that the total investment of SOCAR in Turkey in 2018 will reach $18.1 billion.
"SOCAR intends to further develop its synergetic integrated business presence in Turkey," he added.
More than 150 delegates including managers of SOCAR’s units and members of Azerbaijani Parliament as well as high-level officials, industry leaders, analysts, trade and financial experts, top executives, managers and representatives from ministries and transnational oil&gas companies from Georgia, Iran, Kazakhstan, Kyrgyzstan, Russia, Turkey, Turkmenistan, Ukraine and other countries participate in the event. The three-day forum will feature eight plenary sessions.
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Kamila Aliyeva is AzerNews’ staff journalist, follow her on Twitter: @Kami_Aliyeva
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