The final countdown
This year, the partners in the Shah Deniz field must make two important decisions: a final investment decision for the Caspian gasfield's second-phase development and a pipeline to carry production to Europe. NJ Watson looks at the options
THIS year promises to be key for the second-phase development
of Azerbaijan's giant Shah Deniz gasfield, with final decisions
to be made on investment for the multi-billion dollar project
expansion, as well as the pipeline that will carry the field's
production to European Union markets.
BP, which operates field development consortium, said first
gas from the second-phase development is due on stream in 2018.
Shah Deniz's 16 billion cubic metres a year (cm/y) of gas is
crucial to the EU's plans to reduce its reliance on Russian
supplies. The first phase at Shah Deniz, estimated to hold
total reserves of 1.2 trillion cm of gas and 240 million tonnes
of condensate, has been producing 8 billion cm/y since since
Al Cook, BP Azerbaijan's vice-president for Shah Deniz, told
a news conference in the Azeri capital Baku on 23 January that
a final investment decision...