SOCAR Committed to Caspian Gas Delivery Projects to EU
Amid the background of countless evaluations, statements and instant analyses about the Russia’s unexpected decision to stop South Stream project, Azeri officials are determined to downplay the change of the direction of Russian pipeline towards Turkey, where Caspian gas will be transited to Europe.
Europe has positioned the development of the Southern Gas Corridor and movement of Azeri gas westward, as a key step in the diversification of supply of away from dependence on Russian sources and Azeri officials are keen to keep focused on the realisation of the project.
Vaqif Aliyev, Head of Investments at the State Oil Company of Azerbaijan Republic (SOCAR) told Natural Gas Europe that the company was determined to do what was required to carry out the project.
Often overlooked is that Shah Deniz Stage 2 project is a very large-scale undertaking. Mr. Aliyev said the cost of producing from the complicated geological fields and then transferring gas via a 3600-km newly constructed pipelines to Europe, is estimated to be around $48 billion. There are also evolving considerations in respect to market dynamic and other challenges.
The SOCAR official did discuss environmental concerns being expressed by local government and communities in Southern Italy about Trans Adriatic Pipeline and the potential impact on the overall project schedule. Opponents have positioned the project as stymieing tourism development and impacting the landscape of Italian region of Apulia (Puglia). Suggestions have also been made that such protests are the result of activities by parties external to the debate.
Mr. Aliyev drew a parallel to when BP proposing the realization of Baku-Tbilisi-Ceyhan oil pipeline (BTC) and environmental concerns rose in Georgia. While some delays experienced in the realization of this project, it was completed successfully. The SOCAR representative said that the essential matter is the quality of project, not other things.
Baku-Tbilisi Ceyhan pipeline carries oil from the Azeri-Chirag-Deepwater Gunashli (ACG) field and condensate from Shah Deniz across Azerbaijan, Georgia and Turkey. It links Sangachal terminal on the shores of the Caspian Sea to Ceyhan marine terminal on the Turkish Mediterranean coast. In addition, crude oil from Turkmenistan continues to be transported via the pipeline. Starting in October 2013, transportation of some volumes of Tengiz crude oil from Kazakhstan through the BTC pipeline was resumed as well.