Azerbaijan boosts gas export to Turkey

By Azernews

By Ofeliya Afandiyeva

In January-August 2019, Azerbaijan exported 6,044,65 billion cubic meters of gas from the Shah Deniz field to Turkey, which is 35.5 percent higher than the figure of the same period in 2018, as the Republic of Turkey Energy Market Regulatory Council (EPDK) reports.

According to the Council, in August 2019, Azerbaijan accounted for 734.97 million cubic meters or 23.35 per cent of the total gas supply to Turkey. In comparison with August in 2018, supply grew by 15.57 per cent.

In general, in August gas export to Turkey reached to 3 billion 148.09 million cubic meters (3.74 per cent growth compared with August 2018). Along with it, pipeline gas accounted for 2 billion 346.67 million cubic meters (74.5 per cent of all supply), LNG - 801.42 million cubic meters (25.5 per cent). In addition to Azerbaijan, pipeline gas export was implemented from Iran and Russia in the accounting period.

In 2018, Azerbaijani gas supply to Turkey accounted 7 billion 521.15 million cubic meters. Azerbaijani gas is supplied to Turkey from the Shah Deniz field as part of Stage 1 and Stage 2 of its development.

The Shah Deniz 1 field, discovered in 1999 is one of the world’s largest gas-condensate fields. It is located on the deep water shelf of the Caspian Sea, 70 km south-east of Baku. It began to operate in 2006, owing to potential to produce approximately 10 billion cubic meters of gas per annum. In spite of complicated structure of the wells, constructing a platform and onshore terminal, the field was developed so rapidly. Contribution to the “South Caucasus pipeline” is the most significant feature of the Shah Deniz, as it conducts Azerbaijani gas to Georgia and Turkey and from 2006 and 2007 respectively.

Shah Deniz Stage 2 or Full Field Development (FFD) is a giant project tremendously aiming to keep balance global energy security in Europe and deliver Azerbaijani gas to the world market. It will add a further 16 billion cubic meters per annum of gas production to the nearly 10 cubic metres of gas produced by Shah Deniz Stage 1.

The Agreement on exploration, development and production of the Shah Deniz field in the Azerbaijani sector of the Caspian Sea was signed on June 4, 1996 and entered into force on 17 October of the same year. Shah Deniz is structured as an unincorporated Joint Venture (JV) partnership. BP is the operator of the Shah Deniz JV (28.8 per cent).

Other participants in the Shah Deniz project are: Petronas (15.5 percent), SOCAR (16.7 percent), LUKOIL (10 percent), NICO (10 percent), and TPAO (19 percent).