Azernews.Az

By Aynur Jafarova

The implementation of the second stage of development of the giant Shah Deniz gas condensate field in the Azerbaijani sector of the Caspian Sea will contribute to the region's economic development.

Georgian Deputy Minister for European and Euro-Atlantic Integration Mariam Rakviashvili made the remark at a regional conference titled 'The way to strengthening Eastern Partnership territorial cooperation: Azerbaijan-Georgia territorial cooperation program' on December 19.

Rakviashvili said Shah Deniz-2 is a very large project and its implementation will contribute to strengthening cooperation between the two countries, in particular in the energy field.

The Shah Deniz Consortium has made the final investment decision (FID) on the second stage of offshore gas condensate field development. The signing ceremony was held in Baku on December 17.

The Shah Deniz-2 project authorization means the transition of the project from concept into immediate implementation. The cost of developing the second phase of the Shah Deniz gas condensate field is estimated at $25 billion. Within the second stage of development, some 16 billion cubic meters of gas is planned to be produced, six billion of which will be transported to Turkey and ten billion to Europe.

In his remarks Deputy Head of Department on Cooperation with International Organizations of the Azerbaijani Economy and Industry Ministry Ruslan Rustamli said the two countries actively cooperate within large energy projects such as the Baku-Tbilisi-Ceyhan oil pipeline and Baku-Tbilisi-Erzurum gas pipeline.

The implementation of the Shah Deniz-2 project will strengthen cooperation between the countries in the energy field and ensure the supply of Azerbaijani gas to Europe through Georgia's territory, he said.

With a total length of 1,768 kilometers, the BТС pipeline carries crude oil from the Azeri-Chirag-Gunashli oil fields in the Caspian Sea to the Turkish Mediterranean coast.

The Baku-Tbilisi-Erzurum pipeline transports gas produced from the Shah Deniz gas condensate field located in the Azerbaijani sector of the Caspian Sea. The gas is supplied to Georgia and Turkey.

Azerbaijan-Georgia relations have always been characterized as strategic and friendly ones.

Azerbaijan is second among the main trade partners of Georgia (more than $1.06 billion or 12.4 percent of the total foreign trade turnover). Georgia's imports from Azerbaijan amounted to $480.85 million in January-October of 2013.