The implementation of the second phase of development of the Shah Deniz gas condensate field will allow Azerbaijani gas to enter new markets, covering European buyers, the head of the Investor Relations Department at the State Oil Company of Azerbaijan, Parviz Babayev said at the seventh Caspian Oil and Gas Trading and Transportation Conference in Baku.
If gas supplies were secured to Georgia and Turkey in the first phase of development of the field, and now with the implementation of the second phase, Azerbaijani gas will enter Europe, according to Babayev. The corresponding agreements have already been signed with nine European buyers.
The delivery of Azerbaijani gas will be possible due to the "Southern Gas Corridor", through implementation of the second phase of Shah Deniz development, the expansion of the South Caucasus gas pipeline, construction of Trans-Anatolian and Trans-Adriatic gas pipelines.
The construction of two new pipelines will ensure the transportation of gas through Turkey and then to Europe. The construction of the Trans-Anatolian gas pipeline is estimated at more than $ 10 billion, and the Trans-Adriatic - $5.2 billion, according to Babayev.
The seventh Caspian Oil and Gas Trading and Transportation Conference is held by the British company "Confidence Capital" together with the Azerbaijan State Oil Academy.
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 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).
A final investment decision was made on the second phase of Azerbaijani Shah Deniz offshore gas and condensate field development on December 17, 2013. Some 10 billion cubic meters of gas from this field will be supplied to the European market.