The extension of cooperation between the Azerbaijani State Oil Company and the German E.ON is of great significance in terms of project implementation within the Southern Gas Corridor, SOCAR head Rovnag Abdullayev says.
Abdullayev attended the coordinating committee meeting on cooperation between two companies and congratulated the participants at the E.ON office in Baku.
The Southern Gas Corridor is a project that will allow Europe to diversify its sources of hydrocarbon supply and strengthen energy security and enable Azerbaijan to get a new market in Europe.
Among the important projects, SOCAR head also noted the plans on the expansion of the South Caucasus gas pipeline, creation of the Trans-Anatolian (TANAP) and Trans-Adriatic (TAP) gas pipelines.
Abdullayev expressed his confidence that cooperation between the two companies will contribute to the deepening of economic relations between Azerbaijan and Germany.
Company E.ON is one of the shareholders of TAP. BP (20 percent), SOCAR (20 percent), Statoil (20 percent), Fluxys (16 percent), Total (10 percent), E.ON (nine percent) and Axpo (five percent) are also TAP shareholders.
TAP is designed to transport gas from the Caspian region via Greece and Albania and across the Adriatic Sea to southern Italy and then to Western Europe.
The initial capacity of the TAP pipeline will be 10 billion cubic meters per year with the possibility of expanding to 20 billion cubic meters per year.
Other companies that have also signed the contract, are E.ON, along with eight other companies has signed a long-term contract for the supply of gas to Europe second phase of Shah Deniz field development on September 19, 2013. The contracts on the purchase of Azerbaijani gas from the second phase of Shah Deniz field development were also signed with Shell, Bulgar gas, Gas Natural Fenosa, Gaz de France, Hera, Enel, Axpo.
As E.ON reported, within a 25-year contract, the company will purchase 40 billion cubic meters of Azerbaijani gas. The annual volume of Azerbaijani gas purchases by the company will be 1.6 billion cubic meters.
The contract for the development of the offshore Shah Deniz field was signed on June 4, 1996. The reserves at Shah Deniz field are estimated at 1.2 trillion cubic meters of gas.
Participants to the agreement are: BP (operator) - 28.8 percent, Statoil - 15.5 percent, NICO - 10 percent, Total - 10 percent, Lukoil - 10 percent, TPAO -nine percent and SOCAR - 16.7 percent.