Georgia expects $700 million investments within Shah Deniz-2
By Jamila Babayeva
Georgia expects investments totalling $400-700 million as part of the second phase of Azerbaijani Shah Deniz field's development, Georgian Energy and Natural Resources Minister Kakha Kaladze told journalists on December 17.
"It is envisaged to expand the South Caucasus Pipeline as part of the Shah Deniz-2project with a view to further annually supply 16 billion cubic meters of gas to Turkey," Kaladze said. "It is planned to construct a 387 kilometres long pipeline in Azerbaijan and a 55 kilometres long pipeline in Georgia, as well as to install a new pressure regulating station and two additional compressor stations in Georgia".
Kaladze added that after the start of the pipeline's operation, Georgia will receive additional natural gas.
Georgian Prime Minister Irakli Garibashvili earlier confirmed that investment totaling $700 million is expected to be made in Georgia in about five years.
Speaking about Georgia's benefit from the Shah Deniz-2project, Garibashvili said 2,000-3,000 jobs will be created; capacity of the South Caucasus Pipeline will increase to 16 billion cubic meters of gas, five percent of which will remain in Georgia.
The Final Investment Decision on the second phase of Shah Deniz field's development was made on December 17 in Baku.
Gas within the second stage of the field's development will be exported to Europe through expansion of the South Caucasus gas pipeline and construction of the Trans-Anatolian and Trans-Adriatic gas pipelines.
Reserves of the Shah Deniz field are estimated at 1.2 trillion cubic meters of gas. The cost of the second stage of development of Shah Deniz is estimated at $25 billion.