Azerbaijan enjoys huge resources base for increasing gas exports to Europe
By Gulgiz Dadashova
The first 10 billion cubic meters of the Azerbaijani gas to be delivered to Europe through the Trans Adriatic Pipeline (TAP) is just a beginning of the process of Azerbaijan's gas supplies to Europe.
In his interview to Caspian Energy journal, President of the Azerbaijani state energy company SOCAR Rovnag Abdullayev said that the company expects an increase in export volumes in the future.
Abdullayev said that Azerbaijan has a strong resource base for achieving these goals.
Gas to be produced within the Shah Deniz-2 project is the main source for the TAP, which in June was selected as a route for transportation of Azerbaijani gas to European markets.
The initial capacity of TAP will amount to 10 billion cubic metres per annum with the possibility of expanding to 20 billion cubic metres per annum.
The contracts on the purchase of Azerbaijani gas from the second phase of Shah Deniz field development (Shah Deniz-2 project) were signed with Shell, Bulgar gas, Gas Natural Fenosa, EON, Gaz de France, Hera, Enel, Axpo, DEPA in Baku on September 19.
Abdullayev went on to say that currently Azerbaijan's fields, including those which are being developed, have proven reserves in the amount of 2.55 trillion cubic meters of gas. Given this, the projected reserves of Azerbaijan are estimated at six trillion cubic meters of gas, he said.
The International Energy Agency predicted that by 2030 the European Unions demands for gas will increase from the current 526 billion cubic meters to 622 billion cubic meters a year.
Abdullayev said that as a result of the realization of the Southern Gas Corridor project, Azerbaijan will be a very important and essential gas exporting country at least for 100 years.
The Southern Gas Corridor is a major project designed to meet the European gas needs for decades to come.
The selection of TAP by the Shah Deniz Consortium marks the start of implementation of the Southern Gas Corridor project that will allow Europe to diversify its supply sources and increase energy security as well as enable Azerbaijan to acquire a new market in the face of Europe.
According to BP, gas production in Azerbaijan amounted to 15.6 billion cubic metres in 2012, which is 5.1 percent more than in 2011. Azerbaijan's share in global oil production amounted to 0.5 percent in 2012.
Recently, the Industry and Energy Ministry announced that currently the country's proven gas reserves are at the level of 2.6 trillion cubic meters, while the oil reserves amount to 2 billion tons.
The cited indicators ensure future development of the gas industry in Azerbaijan for a period exceeding 100 years.