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The TAP gas pipeline, the supply contracts have been signed

With Enel, Shell, Hera, E.ON, Gas Natural, GDF SUEZ, Axpo, Bulgargaz and DEPA. A value of $ 200 billion

20130920_2Today in Baku the Shah Deniz II joint venture for the development of the Azeri deposit of the same name has signed the supply contracts with 9 companies that as of 2019 will withdraw gas transported to Europe by the TAP gas pipeline. They include Enel, Hera, Shell, E.ON, Gas Natural Fenosa, GDF SUEZ, Axpo, Bulgargaz and DEPA. The contracts duration is 25 years and they have been assigned upon a selection from 15 candidates requiring a total volume that was more than double than the available amount (10 billion m3 a year).
The companies that have revealed the contracted gas quantity are Hera (300 M m3 a year), GDF SUEZ (2.6 billion m3/year), E.ON (1.6 billion m3/year) and Shell (1 billion m3/year). Enel has only informed that Azeri gas will be intended "for the Italian market," whereas Axpo reported that "the supplies will be earmarked for the gas stations owned in Italy and for refurbishment of the clients in Switzerland and in Italy."
Out of 10 billion m3 available for Europe, Bulgargaz and DEPA have obtained about 1 billion m3 for the supplies to Bulgaria and Greece, respectively. The remaining volume, as a brief by BP reads, "will be intended for the purchasers who are going to refurbish Italy and the adjacent market hubs."
When signing, President of Socar, Rovnag Abdullayev, has pointed out that the contracts signed today have a duration of 25 years and a total value of about $ 200 billion. Deputy President of BP in charge for Shah Deniz, Al Cook, has declared that "all 9 companies have acquired significant gas volumes, but the precise amount of supplies is confidential."
The purchase offers received from potential purchasers have been one of the factors that brought Shah Deniz II to choose TAP as a transportation route to Europe of the Azeri gas (other option was Nabucco through the Balkans).
The contracts signed today are subjected to the final decision on the investment in the second phase of Shah Deniz, planned for the third quarter of this year.



 

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updated
05 August 2016 - 16:32 CEST