Energy diversification beneficial for all parties: U.S.

Posted on December 17, 2013

The diversification of energy supply is beneficial to all parties, Acting Assistant Secretary for the Office of Policy and International Affairs (PI) of the U.S. Department of Energy Jonathan Elkind said on December 17.

Addressing the ceremony of signing of the document on final investment decision (FID) on the second stage of offshore gas condensate field development, Elkind said the international companies and Azerbaijan’s state energy company SOCAR came together in Baku to develop resources and make them available for the market.

“Additionally, these resources are due to be delivered to those who wish to buy them. This highlights the most important thing – the diversification of energy supplies serves the interests of the producer countries and consumer countries of these resources, as well as companies involved in this business and households,” Elkind said.

The assistant secretary conveyed congratulations from U.S. Secretary of Energy Ernest Moniz and the administration of President Barack Obama to the participants.

Southern Gas Corridor is a major project, which is designed to meet the European gas needs for decades to come.

The gas which will be produced in the second phase of Shah Deniz field, is considered as the main source of the Southern Gas Corridor project. A consortium of Azerbaijani Shah Deniz gas condensate field development announced its choice of the TAP project in late June, as a gas transportation route to the European markets.

The final investment decision on Shah Deniz-2 project was adopted in Baku on Dec.17.

Shah Deniz-2 project authorization means the transition of the project from the concept into an immediate implementation stage.

Shah Deniz reserves are estimated at 1.2 trillion cubic meters of gas. The cost of the second phase of development of Shah Deniz gas condensate field is estimated at $25 billion.

Within the second phase of development it is planned to produce some 16 billion cubic meters of gas, six billion of which will be transported to Turkey and ten billion to Europe.