Posted on 20 September 2013 by Priyanka Shrestha
Energy giant BP and its partners have signed a long-term agreement to supply 10 billion cubic metres of gas a year (bcma) from a field in the Caspian Sea.
Located offshore Azerbaijan, the Shah Deniz gas field’s (pictured, during construction) shareholders include the country’s state-owned SOCAR, Francce’s Total and Norway’s Statoil. They are working on the second stage of the field’s development, which is set to bring gas directly from Azerbaijan to Europe for the first time.
In total, 16 billion cubic metres of gas is expected to be delivered through Azerbaijan, Georgia, Turkey, Greece, Bulgaria, Albania and under the Adriatic Sea to Italy.
Gordon Birrell, Regional President for BP in Azerbaijan, Georgia and Turkey said: “The Shah Deniz consortium is proud to be involved in the conclusion of one of the biggest gas deals in the history of the oil and gas industry.
“The deep co-operation that has led to the signing of these gas sales agreements sets the foundation for many years of partnership. The strong demand for Shah Deniz gas gives us confidence in the long-term development of Azerbaijan’s gas resources.”
One of the buyers is energy company E.ON, which announced it has signed a 25-year contract to source 40 billion cubic metres of gas, with supplies expected to start in 2019.