On December 17, 2013 Azerbaijan authorized the Shah-Deniz Phase 2 gas condensate field development worth $28 billion.
62.5% of gas extracted from the Shah-Deniz Phase-2 project a year is planned to be delivered to the European markets. According to the plans of the consortium, gas extraction from the Shah-Deniz Phase 2 will begin at the end of 2018 and its export will begin in 2019.
The European Commission has recently released the official document on occasion of the Shah-Deniz-2, which specifies which European consumers will receive Azerbaijani gas since the end of 2019.
The document also noted that the Southern Gas Corridor will be formed by the trans Anadolu gas pipeline (TANAP) through Italy and trans Adriatic gas pipeline (TAP) through Greece and Albania to Italy. The initial capacity of the TAP will be 10 billion cub.m. a year with the possibility of expanding up to 20 billion cub.m.
TAP shareholders are BP, State Oil Company of Azerbaijan (SOCAR) and Norwegian Statoil (20% each), Belgian Fluxys (16%), French Total (10%), German E.ON Ruhrgas (9%) and Swiss Axpo (5%). TAP construction is expected to begin in 2015.
Gas from the Shah-Deniz field will be bought by the companies from Italy, Greece and Bulgaria. EU press officer Marlene Holzner did not specify at the press conference if gas is going to be cheaper for EU, than gas supplied by Gasprom.—0—
Economics
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Azerbaijan has introduced new rules to simplify the leasing of agricultural land on liberated territories, aiming to attract investments and enhance agricultural productivity, according to a presidential decree issued on November 27, 2024.
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The Asian Development Bank (ADB) allocated $10.5 million to support the retail sector in Azerbaijan, marking another step in its ongoing support for the country’s economic modernization. These investments align with Azerbaijan's broader ambitions to diversify its economy and strengthen small and medium-sized enterprises (SMEs), which are key pillars of sustainable growth.
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At today’s session of the Milli Majlis, Azerbaijan’s parliamentarians discussed and approved in the first reading a draft law increasing the minimum subsistence level for 2025. The updated figures reflect a modest rise of 10 manats, setting the nationwide living wage at 285 manats. For specific demographics, the levels are 305 manats for the working population, 232 manats for pensioners, and 246 manats for children. The same session also approved the criterion of need at 285 manats for the coming year, aligning it with the national living wage.
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This year, the plans of the Australian holding Fortescue Future Industries (FFI) for developing "green" projects in Azerbaijan have been adjusted, though negotiations initiated two years ago are ongoing, an informed source told Turan.
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