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Route on transportation of Shah Deniz gas to Europe to be selected next year

21 May 2012 14:42 (UTC +04:00)

This will increase gas supply and energy security to European markets through the opening of the new southern gas corridor, BP-Azerbaijan reported.

Three options are being considered to carry gas into Europe: the Trans Adriatic Pipeline (TAP) with a route to Italy; Nabucco West taking gas from Turkish-European border through Eastern Europe to the West and the South East Europe Pipeline (SEEP) taking gas to Hungary, Bulgaria and Romania. The Shah Deniz consortium will make a final route selection in 2013.

The estimated $25 billion Shah Deniz Stage 2 project is expected to add a further 16 billion cubic metres per year (bcma) of gas production to the approximately 9 bcma from Shah Deniz Stage 1. It is one of the largest gas development projects anywhere in the world.

This Stage 2 development of the Shah Deniz field, which lies some 70 kilometres offshore in the Caspian, is expected to include two new bridge-linked production platforms; 26 subsea wells to be drilled with 2 semi-submersible rigs; 500 km of subsea pipelines built at up to 550m of water depth; a 16 bcma upgrade for the South Caucasus Pipeline (SCP); and expansion of the Sangachal terminal. Further pipelines will be built and expanded to transport Shah Deniz gas through Turkey and Europe.

In April 2012, the Shah Deniz consortium reached an important milestone and approved the decision to commence Front End Engineering and Design (FEED) on the Stage 2 project. The Shah Deniz Stage 2 project will bring gas from the Caspian Sea to markets in Turkey and Europe, opening up the â€˜Southern Gas Corridorâ€™. Achieving this important milestone allows the consortium to maintain its target for first gas exports around the end of 2017.

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 finalised and key construction contracts will commence.

During the FEED phase of the project, the Shah Deniz consortium will finalise its selection of export routes across Turkey and into Europe.