Azernews.Az

By Aynur Jafarova

One of the main factors in considering route options for Azerbaijani gas exports to Europe is ability to provide guaranteed output of fuel at "maximally minimized rates", a senior official of the Azerbaijani state energy firm SOCAR told Trend news agency.

The partners of the international consortium tapping Azerbaijan's giant Shah Deniz field in the Caspian Sea are considering two potential projects for Azerbaijani gas shipments to Europe - Nabucco West and Trans Adriatic Pipeline (TAP). The final decision on a pipeline route is expected to be made by May 2013.

According to the SOCAR representative, the main criteria mulled in making this choice include potential European regional markets, possible gas prices, marketing, the possibility of expanding capacity, etc.

Supply of gas to Europe will be possible thanks to an important Trans-Anatolian pipeline (TANAP), which is expected to link with Nabucco West or TAP.

Azerbaijan and Turkey plan to start in 2014 the construction of TANAP, which will run from the eastern border of Turkey to the country's western border to supply Shah Deniz gas to European markets through Turkey. Initial capacity of the pipeline will be 16 billion cubic meters. Some 6 billion cubic meters of the volume will be supplied to Turkey, while the rest will be transported to Europe.

Azerbaijan and Turkey signed an intergovernmental agreement on TANAP implementation in June.

The SOCAR official said further, "Active negotiations are underway on joining of three members of the Azerbaijani Shah Deniz gas condensate field development project - BP, Statoil and Total - to TANAP."

SOCAR holds 80 percent in the TANAP project, while Turkey's BOTAS and TPAO have a 20 percent share. According to preliminary data, the partners intend to distribute a 29 percent share in TANAP as follows: Statoil and BP are to receive 12 per cent each and Total would get 5 percent.

SOCAR intends to retain 51 percent of the equity in the project, while Turkey will keep 20 percent.

"The terms put forward by the Azerbaijani and Turkish sides within the Trans-Anatolian gas pipeline project should be accepted by new shareholders of the project," the official added.

Total reserves of the Shah Deniz field are estimated at 1.2 trillion cubic meters of gas. The contract to develop the deposit was signed in June 1996. BP (operator) and Statoil hold 25.5 per cent each in the project, while NICO, Total, Lukoil and SOCAR have 10 percent each, and TPAO 9 per cent.