The implementation of the project of ensuring the gas supply as part of the second stage of developing Azerbaijani gas condensate Shah Deniz field is estimated at $50.6 billion, Azerbaijani Energy Minister Natig Aliyev said during the seventh Caspian Oil and Gas Trading and Transportation Conference in Baku on April 28.
However, he did not rule out the possibility of increasing this figure in the future, especially taking into account the possible changes of prices on the market of goods and services.
"At present, the operations are being actively conducted to ensure the supply of Azerbaijani gas to Europe, including the implementation of the Shah Deniz project, South Caucasus gas pipeline expansion, the creation of the Trans-Anatolian (TANAP) and the Trans-Adriatic (TAP) gas pipelines," he said.
"The Caspian region has large energy reserves and export potential," he said. "Azerbaijan holds a key geographical position among the Caspian countries with large reserves and the European market, which is characterized by high level of energy consumption."
The minister stressed that taking into account the large energy potential of the Caspian region, it is possible to form a single energy transport space in the long term with the involvement of producing and transit countries.
"This will require the development of cooperation among the countries in all areas, improvement of the legal framework and the formation of interaction mechanisms," he added.
The contract for development of the Shah Deniz offshore field, which has proven reserves of 1.2 trillion cubic meters of gas, was signed on June 4, 1996.
Participants in the Shah Deniz field development are the State Oil Company of Azerbaijan (SOCAR) with a share of 16.7 percent, British BP (28.8 percent), Norway's Statoil (15.5 percent), Iran's NICO (10 percent), French Total (10 percent), Russia's Lukoil (10 percent), Turkish TPAO (9 percent).
The final investment decision was made on the second phase of the Azerbaijani Shah Deniz offshore gas and condensate field's development on December 17, 2013. Some 10 billion cubic meters of gas from the field will be supplied to the European market.
The gas to be produced within the second phase of the field's development will be exported to Turkey and to European markets by means of expanding the South Caucasus Pipeline and construction of the Trans-Anatolian Gas Pipeline (TANAP) and the Trans-Adriatic Pipeline (TAP).
The seventh Caspian Oil and Gas Trading and Transportation Conference is being held by the British company "Confidence Capital" together with the Azerbaijan State Oil Academy.