IRAN EAGER TO BUY SHAH DENIZ GAS FROM AZERBAIJAN
Iran has stated its interest in importing Azerbaijani gas in large volumes from the Shah Deniz gas condensate, located in the Azerbaijani section of the Caspian Sea, a reliable source said on 28 May.
Said Reza Kassanzade, the Deputy Iranian Petroleum Minister, also general Manager of the Iranian National Gas Company, has recently visited Baku. During the talks held between Kassanzade and the State Oil Company of Azerbaijan (SOCAR) and leadership of the Shah Deniz consortium, focused on delivery of Azerbaijani gas to Iran, including in Stage 2 of the Shah Deniz field development, scheduled for 2012-2013. The Iranian NICO holds 10% share in the Shah Deniz project.
So far, different opportunities for the Azerbaijani gas transportation have been considered. However, they concerned only the European directions. Meanwhile, 1mln cu.m of gas has been supplied to Iran per day at $300 per 1,000 cu.m, which is high enough. The contract was signed to supply 30mln cu.m of the gas to Iran and it can be extended.
It is planned to export 12bln cu m of gas a day during Stage 2 of the Shah Deniz project. Gas export will be carried out via the South Caucasus gas pipeline (SCP) both in Stage 1 and Stage 2.
At preset possible gas production from the field constitutes 21-22mln cu m from four wells. By mid-2008 the drilling of the fifth well will be complete.
The contract on development of off-shore Shah Deniz field was signed on 4 June 1996. The sides to the contract are ยะ (operator 25.5%), Statoil (25.5%), SOCAR (10%), LukAgip (10%), NICO (10%), Total (10%), and TPAO (9%).
Gas production in the field was launched in December 2006. Presently, gas is transported to Georgia and Turkey via the South-Caucasus gas pipeline. Azerbaijan also purchases the gas.
Some 8.8bln cu m of gas is envisaged to be produced within Stage I per year. The gas will be supplied to Azerbaijan, Georgia and Turkey. The production will be increased up to 20bln cu m within Stage II which will commence to be realized after 2012. At this Stage, the gas is implied to be exported to other countries.
Azerbaijan and Iran are connected by Gazi-Mahammad-Astara-Bind-Biand gas pipeline, with a total length of 1474.5km (296.5km in Azerbaijan). Its carrying capacity makes up 10bln cu m a year. This route is a branch of Gazakh-Astara-Iran pipeline, which was put into exploitation in 1971. Three compressor plants were constructed within the route in Gazi-Mahammad, Agdash and Gazakh. The gas transportation system with the diameter of 1,200mm is intended for 55 atmospheres.
Azerbaijan, Baku, 28 May / corr Trend Capital S.Aliyev
