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Thursday March 30 2023

BP, SOCAR plan to increase gas supplies to Europe

4 February 2023 16:57 (UTC+04:00)
BP, SOCAR plan to increase gas supplies to Europe
Fatima Hasanova
Fatima Hasanova
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bp regional president Azerbaijan-Georgia-Turkiye Gary Jones is confident that Shah Deniz and the Southern Gas Corridor (SGC) are clearly today's, but also tomorrow's top story, Azernews reports with reference to his remarks at the 9th Ministerial Meeting of the Southern Gas Corridor Advisory Council on February 3 in Baku.

“The world needs energy that is secure, affordable, and lower carbon. This makes the role of the projects like SGC and Shah Deniz grow even more. As they help address all three of those needs. Shah Deniz and SGC are clearly today’s, but also tomorrow’s top story. There are significant expansion opportunities for both projects. Now, that there is so much demand for gas supply, this expansion has become even more critical. SGC is designed as scalable so that its initial throughput capacity can be expanded if and when needed. We are currently working with SOCAR and other partners to see how we can use this to increase gas supplies to Europe,” said Gary Jones.

Furthermore, the regional director stated that BP is investigating potential new gas sources.

“We have just spudded an exploration well on Shah Deniz to look for more gas beneath the currently producing horizons. We have also started an appraisal well from Chirag – ACG’s very first platform - to explore the deep gas reservoirs under the producing oil field. In parallel, we are evaluating how we can electrify our operations instead of powering them using gas. The electrification of the Sangachal terminal could be a good start. Replacing the Sangachal gas turbines with grid access would allow us to export the displaced gas through SGC. Both Shah Deniz and SGC can further contribute to the energy transition and security of supply,” noted Jones.

The regional director of BP stated that Azerbaijan has significant potential and strategic plans for increasing gas supplies via SGC.

“We have been privileged and proud to develop and operate the country’s major energy projects over the last 30 years, hand in hand with SOCAR and other co-venturers. Now, as the long-term and reliable partner, we are ready to continue supporting the country as it realizes its plans for SGC,” he stressed.

On December 31, 2020, the Southern Gas Corridor began transporting Azerbaijani gas to Europe. It carries gas from the Caspian Sea region to European countries via Georgia and Turkiye.

This large-scale project aims to diversify energy supply routes and sources, thereby contributing to Europe's energy security. The project cost $33 (AZN56,1) billion instead of the expected $45 (AZN76,5) billion. The SGC project's capital expenditures are expected to be fully repaid within 8-10 years.

As of 2023, Azerbaijan's natural gas exports to the European Union market will total 11.6 billion cubic meters. This year, Azerbaijan will export nearly 24.5 billion cubic meters of natural gas.

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