The consortium behind the giant Shah Deniz gas project in Azerbaijan says it has struck sales deals for more than 10billion cubic metres a year from the field.
Nine companies from Italy, Greece and Bulgaria have agreed 25-year deals to buy gas, which will be sent directly to Europe from Azerbaijan for the first time, with Italian customers receiving around half of all the gas from the field.
Among those buying gas from the consortium are Shell, E.On and GDF Suez, with around 1 billion cubic metres a year for each of the Bulgarian and Greek suppliers.
“The Shah Deniz consortium is proud to be involved in the conclusion of one of the biggest gas deals in the history of the oil and gas industry,” said Shah Deniz operator’s president Gordon Birrell, of BP.
“The deep cooperation that has led to the signing of these gas sales agreements sets the foundation for many years of partnership. The strong demand for Shah Deniz gas gives us confidence in the long-term development of Azerbaijan’s gas resources.”
The project will deliver a total of 16 billion cubic metres a year through more than 3500km of pipeline through Azerbaijan, Georgia, Turkey, Greece and Albania before ducking under the Adriatic Sea to Italy.
The consortium had already agreed a deal to sell 6billion cubic metres worth of gas per year to Turkish customers.
“These agreements mark the biggest gas sales in the history of Azerbaijan,” said Rovnag Abdullayev, president of Azeri state oil firm Socar.
“They also mark the beginning of direct links between Azerbaijan’s huge gas resources and the European markets.”
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