Shah Deniz Consortium Signs 25-yr Gas Supply Deal with Bulgargaz, Greek Companies
Friday, 20 September 2013
The Shah Deniz consortium said it has signed a 25-year sales agreement with nine companies in Bulgaria, Italy and Greece, including Bulgaria's gas monopoly Bulgargaz, for gas to be produced from the Shah Deniz field in Azerbaijan, BP, a partner in the consortium, said.
In addition to Bulgargaz, gas sales agreements have also been concluded with Axpo Trading AG, DEPA Public Gas Corporation of Greece S.A., Enel Trade SpA, E.ON Global Commodities SE, Gas Natural Aprovisionamientos SDG SA, GDF SUEZ S.A., Hera Trading srl and Shell Energy Europe Limited, BP said in a statement.
The signed sales agreements total just over 10 bcma to be produced as a result of the development of Stage 2 of the Shah Deniz project. Of the total 10 bcma, around 1.0 bcma will go to buyers intending to supply to each of Bulgaria and Greece and the rest will go to buyers intending to supply Italy and adjacent market hubs.
The Shah Deniz Stage 2 project is set to bring gas directly from Azerbaijan to Europe for the first time, opening up the Southern Gas Corridor. In total 16 bcma of Shah Deniz Stage 2 gas will be delivered through more than 3,500 kilometres of pipelines through Azerbaijan, Georgia, Turkey, Greece, Bulgaria, Albania and under the Adriatic Sea to Italy.
Thursday’s agreements for European gas sales follow the signing of agreements with BOTAS in 2011 to sell 6.0 BCMA of gas in Turkey.
The gas sales agreements will enter into force following the final investment decision on the Shah Deniz Stage 2 project which is targeted for late this year.
The Shah Deniz co-venturers are: BP, operator (25.5%), Statoil (25.5%), SOCAR (10%), Total (10%), Lukoil (10%), NICO (10%) and TPAO (9.0%).
In June, the Shah Deniz consortium picked the Trans Adriatic Pipeline (TAP) to transport Shah Deniz 2 gas to Europe. TAP will connect with the Trans Anatolian Pipeline near the Turkish-Greek border at Kipoi, cross Greece and Albania and the Adriatic Sea, before coming ashore in southern Italy. Its routing can facilitate gas supply to several South Eastern European countries, including Bulgaria, Albania, Bosnia and Herzegovina, Montenegro, Croatia and others.