SOCAR Could Begin European Supply by 2017

The State Oil Company of Azerbaijan Republic (SOCAR) could begin gas supply to Europe by 2017, the president of the company has said today.

Murad Heydarov, president of SOCAR, told the European Vector of Caspian Energy conference in Baku that the company was considering beginning supply to Europe before 2017 or 2018 at the latest. The company expects first gas from the Shah Deniz field at the same time.

Mr. Heydarov said that a number of potential customers were in consideration for the gas.

"Among the buyers being considered for SOCAR-own gas are neighbouring countries," he said, "Bulgaria; Romania; Hungary; Greece; Macedonia; Serbia.

"Currently technical possibilities of such supplies are under study, including the use of South Caucasus gas pipeline for this delivery of gas from Azerbaijan to the Georgian-Turkish border."

He confirmed that talks about potential gas supply from Azerbaijan to Bulgaria were currently underway, but said that technical details of the deal must first be worked out to ensure the supply.

"We signed a memorandum on transportation of 1 billion cubic meters of gas a year with Bulgaria in 2009. The talks are under way on this issue at the moment. There is interest, profit and gas, but limited technical opportunities. We are studying the ways to transport the gas."

At the same conference, Mr. Heydarov also said that SOCAR expects initial gas production from the Shah Deniz field to reach approximately 4 billion cubic metres of gas annually in the first phase.

"At primary stage supply will amount to 4 billion cubic metres of gas a year," he said. "Later, by 2025, the volume of production may rise up to 50 billion cubic metres of gas a year, taking into account other [non Shah Deniz] gas sources."