Entering of the Shah Deniz Stage 2 project into a new phase of development is an important step toward the realization of the Nabucco gas pipeline project, Nabucco Gas Pipeline International GmbH spokesman, Christian Dolezal told Trend.
"The decision of the Shah Deniz Consortium is an important step toward the realization of the Nabucco project," Dolezal said.
On Tuesday BP announced that the consortium of Azerbaijani Shah Deniz gas condensate field development approved the decision to commence Front End Engineering and Design (FEED) on the estimated $25 billion Shah Deniz Stage 2 project. According to BP, the entry into FEED represents the start of a key phase in the project during which engineering studies will be refined, further wells will be drilled, commercial agreements will be finalized and key construction contracts will commence. Achieving this important milestone allows the consortium to maintain its target for first gas exports around the end of 2017.
During the FEED phase of the project, the Shah Deniz consortium will finalize its selection of export routes across Turkey and into Europe.
Dolezal mentioned that Nabucco project has almost finalized its Front End Engineering for the entire pipeline route.
"Consequently also the partners on the producers' side are now stepping into this crucial phase," he said.
"Our Shareholders and the Shareholders of the Shah Deniz consortium are currently in negotiations and we are confident to find a win-win situation for all parties involved," he added.
Gas to be produced during the second stage of Shah Deniz field development is considered as the main source for all Southern Gas Corridor projects, which are designed to transport Azrbaijani gas to the European markets. Azerbaijan is going to transport 10 billion cubic meters per year to Europe within the Shah Deniz Stage 2 project.
Currently Shah Deniz consortium is evaluating different options to transport Azerbaijani gas to the European markets. It has already made TAP (Trans Adriatic Pipeline) a priority route for export of gas to Italy. By late June, 2012 the pipeline route (Nabucco or SEEP) to the southern and central Europe will be selected. The final decision on a pipeline route to export Azerbaijani gas to the European markets is expected in 2013.