Shah Deniz Phase Two to Deliver in 2019, Azerbaijan Says

Azerbaijan plans to deliver gas extracted within the second phase of Shah Deniz project to Europe in 2019, according to vice-president of the State Oil Company of Azerbaijan (SOCAR), Elshad Nasirov.

Phase two will start production in 2018 and deliver the fuel to the European Union in 2019, the state energy company said, quoted by Azeri news media.

A spokesman for BP, the lead player in the Shah Deniz consortium, confirmed that first gas was anticipated in 2018.

Partners in the project will make the final investment decision in October, Nasirov said, speaking in the Azeri capital, Baku. He also stated that a decision on transportation of Azeri gas to Europe through Bulgaria and Italy could be made in July, 2013.

The SOCAR Vice-President noted that Azerbaijan is interested in other gas pipelines as well as TANAP (Trans-Anatolian Pipeline) : “We are interested in transportation via other Nabucco, TAP and gas pipelines. Relevant contracts on it have already been signed.”

EU nations are seeking to diversify their sources of gas to curb dependence on Russian deliveries, which have been disrupted several times en route through Ukraine. Gas from Shah Deniz, will travel from Baku via the BP-led South Caucasus Pipeline to Turkey’s border, where it will link up with the proposed Trans-Anatolia Pipeline, or TANAP, for shipment to Europe.

Nasirov said SOCAR will spend around €27 million ($40-45m) to help develop the Nabucco West and TAP project take gas to the EU from the Turkish border. Partners will choose between the two in June, he said.