BP Notes Less Interest in Shah Deniz Gas

Energy major BP, leading partner in the Shah Deniz consortium, has noticed less interest in gas from the rich Azerbaijani field, a company executive has said.

BP's Vice President of Shah Deniz Development, Al Cook, said the project has seen a 25% reduction in demand expressed by European buyers since 2010 for future deliveries of Azeri gas. Shah Deniz, a vast field in the Caspian Sea, is expected to come on supply stream by 2019.

But despite the drop in interest, demand still far outstrips the 10 billion cubic metres (bcm) a year earmarked for customers in Europe, Al Cook said.

"Two years ago demand for Azeri gas was 40 bcm, today it's 30 bcm," Cook told Reuters newsagency.

The Shah Deniz development is one measure to reduce Europe's dependence on the Russian Federation as a gas supplier. Later this year, the consortium has to select a pipeline provider to transfer the gas from the Caspian, across Turkey, into western Europe. The two contenders are Nabucco West, or the Trans-Adriatic Pipeline (TAP).

See also: Alasdair Cook: A View on Shah Deniz