Gas production at Shah Deniz field soars

3 August 2019 09:59 (UTC+04:00)

By Mirsaid Ibrahimzade

The Southern Gas Corridor (SGC) is one of the most significant and ambitious undertakings within the global oil and gas industry.

The gas from the Azerbaijani Shah Deniz field has already gone through the first segment of the Southern Gas Corridor - from the Sangachal terminal to the expanded South Caucasus Pipeline.

BP Azerbaijan produced 8.4 billion cubic meters of gas from the Shah Deniz field in the first half of 2019, which recorded a 68 percent growth compared to the figure for January-June 2018, the company told local media.

In the first half of 2019, 2 million tons of condensate was also extracted from the Shah-Deniz field (an increase of 81.8 percent).

The company stated that presently, the capacity of the existing production system at the Shah Deniz field is about 20 billion cubic meters of gas per year or 56 million cubic meters of gas per day.

According to the company, in the first half of 2019, the total cost of the Shah Deniz project was $931 million (a decline of 11.2 percent compared to January-June 2018) of which operating costs were $376 million and capital expenditures amounted to $555 million. The main volume of capital expenditures accounted for the work on the implementation of the second stage.

Shah Deniz Stage 2, one of the largest gas developments in the world, will help increase European energy security by bringing Caspian gas resources to markets in Europe for the very first time.

Shah Deniz Stage 2 is a giant project that will add a further 16 billion cubic meters of gas per year to the approximately 10 billion cubic meters per year produced by Shah Deniz Stage 1.

It is forecast that in 2019, production at the Shah Deniz field will reach 17.39 billion cubic meters of gas.

In 2018, BP-Azerbaijan produced 11.5 billion cubic meters of gas and 2.5 million tons of condensate from the Shah Deniz field.

--

Mirsaid Ibrahimzade is AzerNews’ staff journalist, follow him on Twitter: @MirsaidIbrahim1

Follow us on Twitter @AzerNewsAz