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Ten-Year Network Development Plan 2017 Main Report |
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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.
0
5
10
15
20
bcma
Production
Demand
2005
2006
2007
2008
2009
2010
2013
2012
2011
2015
2014
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