TODAY.AZ / Business

EU called Shah-Deniz investment historical

17 December 2013 [15:29] - TODAY.AZ
The Final Investment Decision (FID) on the Shah Deniz-2 project will pave the way for further diversification of European gas sources, the European Union energy commissioner Gunther Oettinger said at a signing ceremony for FID in Baku on Tuesday.

"And this will strengthen the links between the Caucasus and the EU. It is an energy link, but it is also an industrial link and cultural link as well," Oettinger said.

Oettinger stressed that today's decisions are historic.

"The decision to go forward with the Shah Deniz-2, the decision to upgrade the Southern Caucasus pipeline and the decision to build the Trans Anatolian pipeline are very welcome in Europe. It is not the first time when energy is the basis of long lasting relations between nations," Oettinger said.

"I am pleased to say that we have delivered on what we promised. The development of the Southern Gas Corridor is an excellent example of cooperation between governments and business. And both can profit," he added.

Oettinger said that now gas supply companies have the necessary contracts to underpin the investments needed.

He also added that he was pleased to hear plans about the cooperation between Azerbaijan and Albania, Bosnia and Hercegovina, Croatia, Montenegro in implementing the Southern gas Corridor in South east Europe, as well as Hungary, or Romania or Austria.

"What we are witnessing here today is meant as a beginning of a bigger project," Oettinger stressed.

The signing ceremony for the final investment decision on Shah Deniz-2 project began in Baku today.

Azerbaijani President Ilham Aliyev, his wife Mehriban Aliyeva and heads of several countries and governments attended the event.

The Shah Deniz-2 project authorization means the transition of the project from the concept into an immediate implementation stage.

The contract to develop the offshore Shah Deniz field was signed on June 4, 1996. Its reserves are estimated at 1.2 trillion cubic meters of gas.

The cost of the second phase of development of the Shah Deniz gas condensate field is estimated at $25 billion.

Within the second phase of development it is planned to produce some 16 billion cubic meters of gas, within the first phase it will be nine billion, six billion of which will be transported to Turkey and 10 billion to Europe.


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