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Ten Year Network Development Plan 2015 |

105

0

5

10

15

20

bcma

Production

Demand

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

Figure 5.48:

Azerbaijan's dry natural gas production and

consumption 2001 – 2011 (Source EIA, country

report from Azerbaijan, September 2013)

5.3.3 PIPELINE IMPORTS: CASPIAN GAS

Currently the EU is not importing Caspian gas. It is foreseen to become a new supply

corridor at least at regional level. For the purpose of this Report it is considered to

be the sum of the potential imports from Azerbaijan and Turkmenistan.

5.3.3.1 Azerbaijan

Reserves

Azerbaijan’s proven reserves amount to roughly 900 to

1,400bcm (9,900 to 15,400TWh). The vast majority

of these reserves comes from the Shah Deniz field

which turned Azerbaijan into a net exporter of natural

gas in 2007. Besides that, gas is also produced from

the Absheron and Umid fields. Within the last decade,

domestic consumption has almost doubled. It will fur-

ther increase as Azerbaijan continues to replace old

oil-fired power plants with new combined cycle gas

turbines. In 2011, around 70%of the 18bcm (197TWh)

produced gas is for domestic use.

A large part of Azeri gas is exported to Turkey. The

South Caucasus Pipeline from Baku to Erzurum in

Turkey is the main export line. 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 close-

ly 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 under-

taken by a BP-led consortium. Gas production began in early 2007 and has in-

creased since then. Gas is currently being produced under phase 1, which will see

plateau production at around 9bcma (100TWh/y). Phase 2 will then add further

16 bcma (176 TWh/y) of gas production, with first deliveries in the beginning of

2019. Therefrom 6bcma (66 TWh/y) are basically foreseen for Turkey and 10bcma

(110TWh/y) are foreseen for EU. According to recent information from the Shah

Deniz partners a possible phase 3 has been agreed. Reserves of this phase are es-

timated at 500bcm (5,500TWh), which would boost the fields total reserves to ap-

proximately 1,700bcm

1)

(18,700TWh). This phase would enable to maintain gas

volumes at peak level of 25bcma (275TWh/y) for an extended period but there is

still no final concept. As additional information is rare, ENTSOG’s interpretation of

phase 3 is that, this phase would enable the complete field of Shah Deniz to hold an

overall production of 25bcma. Phase 3 would then maintain the production level

from previous phases.

In recent months the Trans Anatolian Pipeline (TANAP) and Trans Adriatic Pipeline

(TAP) projects took their Final Investment Decision. In combination with the already

decided extension of the South Caucasus Pipeline, it is most likely that the gas of

Shah Deniz phase 2 will reach Southern Europe markets via Turkey.

1) Interfax: Natural Gas Daily, 14 March 2014