Azerbaijan to Supply Gas to Europe Through Turkey

The Republic of Azerbaijan and the Republic of Turkey have signed a number of key gas export related agreements to enable Turkey to buy gas from Azerbaijan and to transit Azerbaijan gas through Turkey to Europe, according to a press release issued Thursday by the State Oil Company of Azerbaijan Republic (SOCAR).

The agreements provide a legal framework to regulate the sale of Shah Deniz gas to Turkey and its transportation to European markets through Turkey.

“We are pleased to finalize the signing of these key agreements between Azerbaijan and Turkey that will lead to Shah Deniz full field development and delivery of Stage 2 gas from Azerbaijan’s giant field in the Caspian Sea to Turkey and European markets. This is a significant step that has been achieved by the two governments with support from all parties involved including the Shah Deniz consortium… This partnership has been a key element in everything accomplished so far and will continue to be a driving force to move Shah Deniz to the stage when it will safely and reliably supply Azerbaijan gas to Turkey and Europe,” said SOCAR President Rovnaq Abdullayev.

Turkey and Azerbaijan’s Shah Deniz natural gas purchase deal is expected to bring in 6 billion cubic metres (bcm) of gas by 2017, energy officials told Reuters on Wednesday.

The deal will allow the transportation of 10 bcm gas to Europe from Turkey, same officials said. The Shah Deniz consortium will determine whether to supply gas to Nabucco or any other project, officials said.

Azerbaijan said in September it would complete gas transit talks with Turkey to ship exports from its Shah Deniz field to Europe by Sept. 26 and sign a final deal in October, giving a potential boost to the European Union’s Nabucco pipeline plans.