Shah Deniz-2 to allow Georgia to receive extra gas
Georgian Minister of Energy and Natural Resources Kakha Kaladze said that realization of the second stage of development of Shah Deniz gas condensate field in the Azerbaijani sector of the Caspian Sea will lead not only to economic growth in Georgia, but also to additional volumes of gas, received for its transit.
The Shah Deniz consortium fwill spend an additional $1 billion, within the framework of implementation of the project for work on the territory of Georgia. The work will be performed in Ninotsminda. As a result of the work on the South Caucasus gas pipeline it will be possible to transport an additional 16 billion cubic meters of gas annualy.
Under the project, there will be constructed two new offshore platforms, connected to each other by a bridge, 26 underwater wells will be drilled with the help of two semi-submersible drilling rigs; 500 kilometers of underwater pipelines at a depth of 550 meters will be constructed, additional opportunities for export in Azerbaijan and Georgia and expansion of the Sangachal terminal will be ensured.
Reserves of Shah Deniz field are estimated at 1.2 trillion cubic meters of gas.
The contract for development of the offshore Shah Deniz field was signed in June 1996. Participants to the agreement are BP (operator) - 25.5 percent, Statoil - 25,5 percent, NICO - 10 percent, Total - 10 percent, Lukoil - 10 percent, TPAO - nine percent, SOCAR - 10 percent.
The gas produced in the second stage of field's development will be exported to Turkey (six billion cubic meters) and Europe (10 billion cubic meters).