Syrian Oil and Gaz News

SOCAR, Botas discuss transit of Azerbaijani gas to Syria via Turkey

Azerbaijan is discussing natural gas exports to Syria and may start supplying about 1 billion cubic metres (bcm) a year to the country from 2012, the head of Azeri state energy company SOCAR said on Monday. “Gas deliveries to Syria via Turkey in the amount of 1 bcm are planned to be started from 2012 with a further increase to 2 bcm after 2015,” Rovnag Abdullayev told journalists.

 

 

He said Azerbaijan was still negotiating with Turkey over technical details of deliveries and transit fees. The ex-Soviet republic is being courted by the West and Russia for its energy reserves in the Caspian Sea, and is a key potential gas supplier for the European-backed Nabucco pipeline project aimed at reducing the continent’s energy dependence on Russia.

The 7.9 billion euro ($11 billion) Nabucco pipeline aims to bring up to 31 billion cubic metres of gas annually from the Caspian and Middle East to an Austrian hub via Turkey and the Balkans, cutting out Russia. But it faces competition for Azeri gas from Russia’s South Stream project to transit gas under the Black Sea to Europe. Russian state energy giant Gazprom signed a deal with SOCAR in September to buy 2 bcm of gas in 2011 and even more from 2012.

Shah Deniz, co-led by BP and Statoil, is estimated to contain 1.2 trillion cubic metres of gas. Production at the deposit began in 2006, while second phase production is expected to begin by late 2016 or early 2017. Azerbaijan’s total gas reserves are estimated at 3-5 trillion cubic metres.

The country has been in talks with more than 20 firms and consortiums looking to buy gas from Shah Deniz II and has said it will conclude negotiations by mid-2011. It is negotiating with Turkey to sell 6 bcm of gas per year from Shah Deniz II, and 10 bcm to European customers. Azerbaijan plans to produce more than 18 bcm of gas in 2010 and to boost production to 30-35 bcm by 2015.