ENTSOG TYNDP 2017 - Main Report

3.3.1.5 Azerbaijan

Reserves Azerbaijan’s proven reserves amount to roughly 1,100bcm (12,100TWh)  1) . The vast majority of these reserves come from the Shah Deniz field which turned Azerbaijan into a net exporter of natural gas in 2007. Besides that, gas is also pro- duced from the Absheron and Umid fields. As it is shown in the next figure, domes- tic consumption has been stable for the past decade. Around half of the country’s natural gas consumption is currently for power generation and it could further increase if Azerbaijan continues to install new gas fired power plants.

20 bcma

15

10

5

0

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Production

Demand

Figure 3.30: Azerbaijan’s natural gas production and consumption 2001–2015. (Source: BP Statistical Review 2016)

Most of Azeri gas is exported to Turkey via the South Caucasus Pipeline from Baku to Erzurum as the main export pipeline. Some volumes are also exported to Russia via the Gazi-Magomed-Mozdok Pipeline and to Iran via the Baku-Astara Pipeline

Shah Deniz Field The potential exports of Azeri gas to Europe are closely linked to the development of this field. Discovered in 1999, it holds approximately 1,000bcm (11,000TWh) of natural gas reserves and its development is undertaken by a BP-led consortium. Gas production began in early 2007 and it has increased since then, reaching a produc- tion of almost 10bcm (110TWh/y) in 2015  2) . Phase 2 will add another 16bcma (176TWh/y) of gas production with the first deliveries estimated in 2019, of which 6 bcma (66 TWh/y) are already contracted by Turkey. The additional 10 bcma (110 TWh/y) are contracted by Southern Europe countries expecting supply via Turkey through the Trans Anatolian Pipeline (TANAP) and Trans Adriatic Pipeline (TAP) projects, in combination with the extension of the South Caucasus Pipeline.

 1) Source: BP Statistical Review 2016  2) EIA Country Analysis Brief 2016: Azerbaijan

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