Shah Deniz Stage 2 project will contribute to a substantial increase in gas production
Posted on: 02/12/2013

The Shah Deniz field, which is situated about 70 kilometres offshore in the Caspian Sea, is expected to contribute an additional 16 billion cubic metres of gas production per year as part of the estimated $25 billion Stage 2 project. This year, $1.7 billion will be spent on the development, which is planned to include two new production platforms, linked by a bridge; 26 subsea wells which will be drilled with two semi-submersible rigs; 500km of subsea pipelines built at depths of up to 550m of water and an upgrade for the South Caucasus Pipeline (SCP) of 16 bcma. This will be extended with a new 48’’ diameter pipeline in Azerbaijan and two compression stations in Georgia plus the expansion of the Sangachal terminal. A new Trans Anatolian Pipeline (TANAP) in Turkey will transport Shah Deniz gas and is predicted to play a very important part in the Southern Gas Corridor, linking the considerable gas resources of the Caspian Sea to EU and Turkish markets.

In 2011, sales agreements signed with BOTAS permitted the annual sale of 6 billion cubic metres of Shah Deniz Stage 2 gas in Turkey. A statement by the Shah Deniz consortium on the 28th June revealed that the Trans Adriatic Pipeline (TAP) had been chosen for the annual delivery of up to 10 billion cubic metres of Shah Deniz Stage 2 gas to customers in Italy, Greece and possibly Southeast Europe. Sales agreements of 25 years were finalised with nine organisations on the 19th September. This was for just over 10 billion cubic metres a year of Shah Deniz Stage 2 gas for purchase in Greece, Italy and Bulgaria. More than 3,500 kilometres of pipelines via Azerbaijan, Georgia, Turkey, Greece, Bulgaria, Albania and beneath the Adriatic Sea to Italy, will deliver annually a total of 16 billion cubic metres of Shah Deniz Stage 2 gas. Working on the assessment of general progress up to now, around $1.7 billion is planned to be spent by the project in 2013. A final investment decision regarding the programme is due in December 2013 and the first production of Shah Deniz Stage 2 is on the agenda for 2018.   

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