Industry and Energy

Industry and Energy

Azerbaijan starts implementation of one of the worldâ€™s largest gas projects

30 November 2010 13:44 (UTC +04:00)

According to BP-Azerbaijanâ€™s President Rashid Javanshir the project is designed to produce and send 16 bcm of Azerbaijani gas to European markets through new corridor and $ 20 bln will be spent to the implementation of project.

According to APA-Economics, different works are planed to be conducted within the framework of the full-large development project of Shahdeniz. Thus, according to project, two new platforms owning annual processing capacity as 16 bcm and merged with bridge will be constructed, near 30 subsea wells will be drilled from 2 semi-submersible drilling rigs, 500 km-subsea pipeline will be established in depth of 550 metres.

Currently, an appraisal wells is being drilled in the field. The drilling works conducting via Istiglal plant has started in July 2010 and wil finish in 2011. The depth of appraisal well must be 6272 metres. The first gas within the framework of this project is expected to be extracted in 2017.

For production of extracted gas, the annual extraction capacity of South Caucasus Pipeline will be tripled to 24 bcm. Sangachal terminal will be extended and new 400 metres-new pipeline will be launched. Two new compressors will be established in Georgia. The works on extending of SCP have already started and will be continued by the end of this year.

By the way, Rashid Javanshir noted that, launch of new pipeline in Azerbaijani side is related with a being of relief plain: â€œThatâ€™s why itâ€™s not more difficult to launch new pipeline in Azerbaijan. Georgian relief is more useful to construct two new compressorsâ€.

The discussions on determining of route of pipeline for establishment of new South Corridor are being continued. SOCAR heads these talks. Different issues, including gas transportation through Turkey are being discussed in these negotiations.

At the same time, talks on purchase of extracted gas are being conducted with European purchasers. According to Rashid Javanshir, the purchasers, capacity, prices and other aspects are being discussed herein: â€œThe talks will be continued until the end first quarter of 2011 and all are depending on these. If we end these, the project works will be continued and the first gas will be extracted in 2017. All depend on these talks.â€