Southern Gas Corridor project, which envisages transportation of Azerbaijani gas to Europe, is a key energy project in Europe, said CEO of Italy's Snam company Marco Alvera.
'A key energy project in Europe is the Southern Gas Corridor. There is opportunity to access different markets, he said during the conversation on future of gas in Europe and challenges.
He pointed out that domestic gas production is declining, so imports will need to rise.
The Southern Gas Corridor is one of the priority energy projects for the EU. It envisages the transportation of gas from the Caspian region to the European countries through Georgia and Turkey. The gas to be produced as part of the Stage 2 of development of Azerbaijan’s Shah Deniz field is considered as the main source for the Southern Gas Corridor projects. As part of the Stage 2 of the Shah Deniz development, the gas will be exported to Turkey and European markets by expanding the South Caucasus Pipeline and the construction of Trans Anatolian Natural Gas Pipeline and Trans Adriatic Pipeline.
First gas transportation to neighbour country within TANAP will start in 2018. The planned capacity of the pipeline would be 16 billion cubic metres of natural gas per year at initial stage and would be increased later up to 23 billion cubic metres by 2023, 31 billion cubic metres by 2026.
1,802 km-TANAP will be linked to TAP from 2020 and deliver natural gas that will receive via South Caucasus Pipeline to Europe through Greece, Albania and Italy.
The pipeline is expected to cost US$9.2 billion. Azerbaijan will spend $6.1 billion.
TANAP shareholders: SOCAR - 58%, Botas – 30% and BP – 12%.
TAP will transport natural gas from the giant Shah Deniz II field in Azerbaijan to Europe. The approximately 878 km long pipeline will connect with the Trans Anatolian Pipeline (TANAP) at the Turkish-Greek border at Kipoi, cross Greece and Albania and the Adriatic Sea, before coming ashore in Southern Italy.
TAP’s shareholding is comprised of BP (20%), Southern Gas Corridor (20%), Snam (20%), Fluxys (19%), Enagás (16%) and Axpo (5%).
The Leviathan gas field is a large natural gas field located in the Mediterranean Sea off the coast of Israel. The gas field, located roughly 130 kilometres west of Haifa in waters, was discovered in 2010. The potential reserve size is being estimated at 500-600 bcm.