12 February 2013 17:04 [Source: ICIS news]
LONDON (ICIS)--A production start for the BP-led $25bn (€18.8bn) Shah Deniz II natural gas project in Azerbaijan has been scheduled for 2018, the State Oil Company of the Azerbaijan Republic (SOCAR) said on Tuesday.
Output from Shah Deniz II, which is expected to produce 16bn cubic metres of gas per year, should be delivered to EU member states from 2019, SOCAR added.
The EU has declared that gas from phase two of the Shah Deniz field should form an integral part of its plan to diversify away from over-dependence on Russian gas supplies.
Two pipeline projects are competing for the right to forward the gas to Europe from a transit point on the Turkish border, where it will arrive via the Trans-Anatolian Pipeline (TANAP) to be built by Azerbaijan and Turkey.
The two rival pipeline bidders are Nabucco West, a project of the European Union-backed Nabucco consortium, and the Swiss-Norwegian-German Trans Adriatic Pipeline (TAP) joint venture.
The partners in the Shah Deniz II project will select one of the pipeline projects in June this year, SOCAR said.
($1 = €0.75)
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