Azerbaijani energy minister outlines new directions of hydrocarbons' supply to world markets - UPDATE

13:32

As part of the gas export from the Shah Deniz II,  Azerbaijan is considering two priority tasks: sale of gas at the most efficient price and gas exports to Europe, Azerbaijani Industry and Energy Minister Natig Aliyev said.

"The second phase of the giant Shah Deniz gas field is important for Azerbaijan. We have two goals - to sell gas at the maximum price and at the same time to export gas to Europe," he said at a news conference today.

He said the countries neighboring with Azerbaijan are ready to buy these volumes of gas.

"We have neighbors who would be happy to buy our gas, but our task is to transport gas not only in one direction," the minister said.

The contract on development of off-shore Shah Deniz field was signed on 4 June 1996. Shah Deniz participating interests are: BP (operator - 25.5 percent), StatoilHydro (25.5 percent), SOCAR (10 percent), LukAgip (10 percent), NICO (10 percent), Total (10 percent), and TPAO (9 percent).

12:55

"New direction of export of Azerbaijani hydrocarbons lies through the Black Sea," Azerbaijani Industry and Energy Minister Natiq Aliyev said at a news conference on Nov. 14.

"This is a new direction," Aliyev said.

"New prospects and directions have opened for us," the minister said.

"Azerbaijan has never transported compressed gas via special tankers through the Black Sea earlier. It is new for Azerbaijan. We will further conduct research on this direction. This idea will be studied in detail," Aliyev added.

"As to the South Corridor, we focus not only on the Nabucco gas pipeline project. We look forward for the EU actions towards realization of the project. But we consider the South Corridor project in a broader manner," minister said.

"Presently, problems with power engineering have great importance. Each country solves these problems itself. Our country is lucky in this regard as it has  resources," the minister said.

He said that Azerbaijan actively cooperates with EU at present.

"We enhance both economic and political relations with European countries. As to Bulgaria, we always had good relations with this country. We must also expand them in future," the minister said.

"Nabucco gas pipeline project has unsolved issues. One of them is a resource base," Aliyev noted.

"Azerbaijan is the only resource base for Nabucco gas pipeline at the moment. Nothing depends on us in this project now. We have done much. At present, we wait for further progress on this project," minister said.

Nabucco gas pipeline project is worth 7.9 billion euros.

Participants of the project are Austrian OMV, Hungarian MOL, Bulgarian Bulgargaz, Romanian Transgaz, Turkish Botas and German RWE. Each of participants has equal share of 16.67 percent.
 
Construction of gas pipeline is planned to be launched in 2011, the first supplies - in 2014. Maximal capacity of the pipeline will be 31 billion cubic meters per year. 

Nabucco Gas Pipeline International shareholders will invest 30 percent of total cost of the project, the rest 70 percent will be paid owing to loans.

/Trend Capital/