Shah Deniz nat gas consortium evaluating pipeline bids

02 May 2013 12:27  [Source: ICIS news]

LONDON (ICIS)--The consortium developing the $25bn (€19bn) Shah Deniz II natural gas project in Azerbaijan has begun to evaluate two binding offers from consortia offering to provide gas transportation services, project leader BP said on Thursday.

The consortium is evaluating offers by the Nabucco Gas Pipeline International and Trans Adriatic Pipeline (TAP) consortia. The groups delivered their initial gas transportation offers to the Shah Deniz II consortium in March this year, and the offers have now been approved by their shareholders and become final and binding, BP added.

The Shah Deniz II consortium said that it would select a pipeline partner in June this year.

Nabuco’s shareholders are the state-owned Bulgarian Energy Holding, Turkey-owned BOTAS, Austria-based oil and gas company OMV, Romanian state-owned natural gas transmission company Transgaz, and FGSZ, a subsidiary of Hungary-based oil and gas company MOL Group. The consortium has the backing of the EU.

The TAP consortium is 42.5%-owned by Norwegian government-owned Statoil, 15%-owned by German company E.ON Ruhrgas and 42.5%-owned by Axpo, which is owned by several administrative districts in northeastern Switzerland.

Both consortia have pledged to carry 10bn cubic metres/year (bcma) of gas from Azerbaijan to different markets in southern and central Europe.

So far, the Shah Deniz II group has received gas sales offers for more than 30 bcma from around 15 gas buyers in Europe.

The gas sales offers will be considered alongside the transportation offers to determine the commerciality of the pipeline options and the respective markets,” BP said in a statement.

The EU has declared that gas from phase two of the Shah Deniz field should form part of its plan to diversify away from over-dependence on Russian gas supplies.

($1= €0.76)

By: Tom Brown
+44 208 652 3214

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