Europe received gas from Azerbaijan for the first time

Baku/ 31.12.20/Turan:  On December 31, consumers in Italy, Greece and Bulgaria received the first Azerbaijani gas, SOCAR and BP reported.

“Today Azerbaijani gas has been delivered to consumers in Italy through the Melendugno point to the SNAM ReteGas (SRG) gas distribution network, through the Nea Mesimvria point to Greece and Bulgaria through the DESFA network,” the statement said.

Such direct access to the European gas market allows Azerbaijan to diversify its export of "blue fuel".

Gas supplies to Europe are carried out via the Trans-Adriatic Gas Pipeline (TAP) with a throughput capacity of 10 billion cubic meters per year.

“7 years ago, our partners and I made the final investment decision and went to sign contracts for the purchase and sale of gas to Europe for a period of 25 years. As a result, three gas pipelines with a total length of 3,500 km were laid and today Azerbaijani gas is in Europe,” said SOCAR President Rovnag Abdullayev, whose words are quoted in a SOCAR press release.

According to him, Azerbaijani gas is a new source of gas supplies to Europe via an alternative route. “Thus, Europe will strengthen its energy security. Reduction of gas production within the European market creates a need for additional volumes and Azerbaijani gas will allow meeting these needs,” he said.

"The second stage of market research on the possibility of expanding the TAP capacity to 20 billion cubic meters will begin in the summer of 2021," the message says.

Gary Jones, Regional President for Azerbaijan, Georgia and Turkey of BP, the operator of the Shah Deniz field, said: “The start of gas supplies to Europe from Azerbaijan is the culmination of many thousands of people, communities, companies, the Azerbaijani government and other governments, as well as SOCAR. and our partners. This is truly a world-class project in every respect. Despite the complexity of all aspects of the project - engineering, technical, geographic and geopolitical - it was implemented safely, on time and on budget. This is a historic milestone, when Azerbaijan and Europe are now linked by direct, safe and reliable energy ties, which once again demonstrates that together we can successfully implement the most complex mega-scale projects. "

It is noteworthy that the project was originally estimated at $ 40-45 billion, but was implemented for $ 33 billion.

“Azerbaijan has started commercial gas supplies to Europe through TAP and thus achieved the strategic goal in the implementation of the Southern Gas Corridor project,” the Ministry of Energy said in a statement.

The ministry notes that Azerbaijan will annually supply more than 10 billion cubic meters of gas to Europe for 25 years, of which about 8 billion cubic meters will be received by Italy, a total of 2 billion cubic meters - Greece and Bulgaria in equal shares, the rest will be exported to neighboring markets.

The TAP AG consortium announced the completion of the construction of this gas pipeline on October 13, 2020. The total length of TAP is 878 km, of which 550 km passes through the northern part of Greece, 215 km - through the territory of Albania, 105 km - through the Adriatic Sea and 8 km - through Italy. TAP is the latest component of the SGC project, which provides for the creation of infrastructure for the supply of Azerbaijani gas to Europe.

The gas pipeline is designed to transport 10 billion cubic meters per year of natural gas from the Shah Deniz field as part of the "Stage-2" of its development through Greece and Albania to Western Europe. The throughput capacity of the gas pipeline makes it possible to double its capacity, up to 20 billion cubic meters per year.

Co-owners of the project: SOCAR (20%), BP (20%), Snam (20%), Fluxys (19%), Enagas (16%) and Axpo (5%). The project cost is 4.5 billion euros. The groundbreaking ceremony for TAP took place on 17 May 2016 in Greece.

The main components of the project are: Stage-2 of the Shah Deniz project, the expansion of the South Caucasus pipeline Baku-Georgia-border with Turkey, the construction of the Trans-Anatolian gas pipeline (TANAP) from the eastern to western borders of Turkey and the Trans-Adriatic gas pipeline (TAP), connecting Greece, Albania and southern Italy.

The total gas supplies through the Southern Gas Corridor are calculated for 16 billion cubic meters per year, of which 10 billion cubic meters - to Europe, another 6 billion cubic meters - to the western regions of Turkey. Deliveries to Turkey began in the summer of 2018. —0—