Shah Deniz consortium begins evaluating gas pipeline projects
The BP-led Shah Deniz consortium has commenced evaluating the final offers it received from two competing pipeline projects designed to carry to Shah Deniz Stage 2 gas to Europe.
The project will open up the Southern Gas Corridor by transporting gas from the Caspian Sea to markets in Turkey and Europe. Shah Deniz Stage 2 is estimated to increase gas production by another 16 billion m3/yr from about 9 billion m3/yr from Shah Deniz Stage 1.
The two transportation proposals, EU-backed Nabucco West and the Trans Adriatic Pipeline (TAP), will be evaluated thoroughly. The analysis will help in deciding the ideal export route to Europe based on pre-established selection criteria.
The selection criteria include commerciality, project and financial deliverability, engineering design, alignment and transparency, operability, scalability and public policy. A final decision is expected by the end of June. In addition, binding gas sales offers from prospective gas buyers are also anticipated in April.
British energy giant BP is the operator of Shah Deniz II. Other partners in the project are Lukoil, Total SA and Statoil ASA as well as Socar, Turkiye Petrolleri and Naftiran Intertrade. Deals have been set up ensuring that Shah Deniz consortium would also represent 50% of the shareholders of either pipeline project.
It has been reported that TAP has requested a "Third Party Access exemption" from the European Commission, meaning that the pipeline would not be used by other suppliers, in spite of the EU's rules for energy liberalisation, marking a significant difference between the two pipelines.
The largest stretch of the TAP pipeline runs across Greece, where Russia is bidding to buy the country's gas companies DEPA and DEFSA. It is therefore likely that if the Greek pipeline network is taken over, Russia will make a request to TAP to transport its own gas, turning EU rules to its advantage.
Edited from various sources by Cecilia Rehn.
Read the article online at: https://www.worldpipelines.com/business-news/05042013/shah_deniz_consortium_begins_evaluating_rival_natural_gas_pipeline_projects/
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