EIA: Azerbaijan to become more significant supplier of natgas to Southern Europe
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By Trend
Azerbaijan is an important supplier of crude oil and natural gas in the Caspian Sea region, particularly to European markets, Trend reports citing the US Energy Information Administration (EIA).
EIA says in its report that Azerbaijan’s exports of natural gas are poised to become a more significant part of the country’s economy.
“Azerbaijan is planning to expand its natural gas exports to Europe. European Union (EU) leaders consider connecting Azerbaijan’s Shah Deniz natural gas field to Southern Europe to be a step toward the strategic goal of diversifying Europe’s natural gas supply. Southern and Eastern Europe, in particular, have limited supply options for natural gas because of geographic constraints and infrastructure limitations,” reads the report.
The proposed Azerbaijani volumes could help mitigate potential natural gas supply disruptions by providing another option to satisfy regional natural gas demand, according to EIA.
Azerbaijan is currently implementing the Southern Gas Corridor project, which is one of the priority projects for the EU. It envisages the transportation of 10 billion cubic meters of Azerbaijani gas from the Caspian region through Georgia and Turkey to Europe.
The goal of the Southern Gas Corridor is to reduce Europe's dependency on Russian gas and add diverse sources of energy supply. The total investment is estimated at $45 billion. The main supply source would be the Shah Deniz gas field, located in the Caspian Sea.
TANAP is the central part of the Southern Gas Corridor, which will connect the giant Shah Deniz gas field in Azerbaijan to Europe through the South Caucasus Pipeline, TANAP and the Trans Adriatic Pipeline. The pipeline has a strategic importance for both Azerbaijan and Turkey. It allows the first Azerbaijani gas exports to Europe, beyond Turkey. It also strengthens the role of Turkey as a regional energy hub.
The launching ceremony of the first stage of the Southern Gas Corridor was held in Baku on May 29, 2018, while opening ceremony of TANAP was held on June 12, 2018 in the Turkish city of Eskisehir.
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.
TAP is a pipeline project to transport natural gas, starting from Greece via Albania and the Adriatic Sea to Italy and further to Western Europe.
The pipeline would be supplied by natural gas from the second stage of the Shah Deniz (Azerbaijan) gas field development in the Azerbaijani section of Caspian Sea through the South Caucasus Pipeline and the Trans Anatolian Pipeline (TANAP).
Trans-Adriatic Pipeline (TAP) and Trans-Anatolian Natural Gas Pipeline (TANAP) have been connected on the Turkish-Greek border.
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