Azerbaijan's untapped gas resources may expand Southern Gas Corridor: draft declaration
By Leman Mammadova
Significant untapped gas resources in Azerbaijan can provide additional gas supplies to Europe, Trend reports citing the draft joint declaration.
The document is expected to be signed during the fifth meeting of the Advisory Council of the Southern Gas Corridor to be held in Baku on February 20.
The draft declaration reads that all remaining segments of the Southern Gas Corridor are nearing completion, with the first gas to Italy expected to be supplied by 2020.
“We declare that the Southern Gas Corridor has achieved significant progress and we maintain our effort to ensure its timely completion enabling delivery of natural gas to Europe by 2020,” says the document.
In addition, the document recognizes the need for the effective operations of the Southern Gas Corridor through the timely completion of the Trans Adriatic Pipeline (TAP).
The declaration recognizes the strategic role of Azerbaijan as a key enabler of the Southern Gas Corridor in the efforts to deliver secure, sustainable, competitive and affordable energy to consumers in Georgia, Turkey and Europe and appreciates the investments of Azerbaijan and International Energy Companies in the components of the Southern Gas Corridor, including in Europe itself.
The document emphasizes the crucial role of Turkey, Georgia, Greece, Albania, Bulgaria and Italy in assuring the successful operation of the energy projects and transportation corridors as well as gas supplies from the Caspian Region to Europe on their territories.
The declaration appreciates the continuous support expressed by South Eastern European countries for the implementation of the Southern Gas Corridor and their contribution to connecting Southern and Central Europe and the Southern Gas Corridor.
It also recognizes the importance of the continuing support of the United States of America in developing the Southern Gas Corridor.
The joint declaration notes the renewed commitment to the long-term presence of the international oil and gas companies in the energy sector of Azerbaijan.
It also highlightes the ongoing efforts and successive and focused steps towards construction of the Gas Interconnector Greece-Bulgaria to start this year, and the progress in establishing the Ionian Adriatic Pipeline Project Company within the framework of the Energy Community.
The document also notes the significant role of the International, European and national Financial Institutions in contributing to the provision of loan capital to realise the Southern Gas Corridor.
Moreover, the document recognizes that significant untapped gas resources in Azerbaijan can provide additional gas supplies to Europe and recognizes the decision of Azerbaijan and investing companies to facilitate development of Absheron, Umid, Babek, Karabakh, Dan Ulduzu, Ashrafi, Shah Deniz III and other fields to continue to supply and possibly expand the Southern Gas Corridor.
The document notes the relevance of natural gas as a transition fuel and being one amongst other back-up solutions for power generation from renewable energy sources.
“We welcome the interest of potential additional new suppliers of natural gas to use the Southern Gas Corridor to further diversify natural gas supplies to Europe and to other countries; and encourage discussions to ship additional gas supplies to Europe,” reads the declaration.
It is envisaged that the Joint Declaration will be endorsed by representatives of the Republic of Azerbaijan, the Republic of Albania, Bosnia and Herzegovina, the Republic of Bulgaria, Georgia, the Hellenic Republic, the Italian Republic, the Republic of Turkey, the Republic of Croatia, Montenegro, Romania, San-Marino, the United Kingdom, the United States of America, and the European Union.
The first meeting of the SGC Advisory Council was held on February 12, 2015, the second meeting - on February 29, 2016, the third meeting - on February 23, 2017, while the fourth one took place on February 15, 2018.
The Southern Gas Corridor, $ 40 billion worth project, envisages the transportation of 10 billion cubic meters of gas to Turkey and Europe through the pipeline, which will be operated within the second stage of the Shah Deniz gas condensate field project in the Azerbaijani sector of the Caspian Sea.
Shah Deniz is a giant gas condensate field, reserves of which are estimated at 1.2 trillion cubic meters of gas and 240 million tons of condensates. Within the second stage of field development, the volume of gas production can be increased to 24 billion cubic meters per year, according to forecasts.
Gas produced within Shah Deniz Stage 2 will be transported from the Caspian Sea to Europe, through Italy, Georgia, Turkey, Greece, Bulgaria, Albania and the seabed of the Adriatic Sea.
The Southern Gas Corridor consists of four projects: Shah Deniz 2, Expansion of South Caucasus Pipeline (Baku-Tbilisi-Erzurum), the Trans Anatolian Pipeline (TANAP) and Trans Adriatic Pipeline (TAP).
Energy Ministry recently revealed the current execution state of the implementation of the Southern Gas Corridor (SGC) projects. According to the information, at the end of 2018, 100 percent of the total gas production work on the Shah Deniz-2 project, 92.3 percent of the work on full-scale development, 99.8 percent of the work on the South Caucasus Pipeline Expansion project, 98.8 percent of the construction works of TANAP and 82.4 percent of TAP pipeline construction works were implemented.
Perhaps this is one of the most ambitious projects in the world of oil and gas industry, as well as a complex target that involves a large number of different stakeholders - including seven governments and 11 companies.
On May 29, Baku hosted the launch of the first phase of the Southern Gas Corridor project, and on June 12, the opening ceremony of the TANAP took place in the Turkish province of Eskisehir.
Thus, the first 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.
Recently, TAP and TANAP successfully completed their connection on the banks of the Merich River on the Turkish-Greek border.
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Leman Mammadova is AzerNews’ staff journalist, follow her on Twitter: @leman_888
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