SOCAR not excludes AGRI project realization

By: Gulgiz Dadashova

The Azerbaijan-Georgia-Romania interconnector may become one of the projects that will supply Azerbaijan’s blue energy to the world market.

President of the Azerbaijani state energy company SOCAR Rovnag Abdullayev made the remark at event dedicated to the oil and gas industry workers on December 8.

“All projects have a right to exist,” he said. “Azerbaijan enjoys large reserves of natural gas. Thus, there should be an infrastructure to bring these reserves to the markets and AGRI can also take part in this in the future as well.”

Abdullayev further stressed that now the priority is given to the projects under the Southern Gas Corridor, which has great potential for expansion. “If the market demands it, each of the projects can be considered anew,” he said.

AGRI project envisages the transportation of Azerbaijani gas to the Black Sea coast of Georgia via the gas pipelines. Azerbaijani gas delivered to Georgia’s Black Sea coast will be liquefied at a special terminal and following this, it will be delivered to a terminal at Romanian port of Constanta with tankers.

Further, it will be brought to the gaseous state and sent via the country’s gas infrastructure for meeting the demands of Romania and other European countries.

British engineering company Penspen has presented to AGRI shareholders of the final version of the project feasibility study. The document was reviewed by the Board of Directors, and then recommended to the General Meeting of Shareholders, which is scheduled for January-February 2015.

The cost of the project will vary from 1.2 billion euros to 4.5 billion euros, according to the preliminary estimations. The project’s cost will depend on the capacity of terminals that could be equal to 2-8 billion cubic meters of gas per year.

The participants of the AGRI project are Azerbaijan’s SOCAR, Georgia’s Oil and Gas Corporation, as well as MVM (Hungary) and Romgaz (Romania) companies. In February 2011, the parties established a joint venture for the implementation of the SC AGRI LNG Project Company SRL project.

SOURCE: AZER NEWS