The Shah Deniz Stage 2 project will bring gas from the Caspian Sea to markets in Turkey and Europe, opening up the ‘Southern Gas Corridor’. First gas exports are expected at the end of 2017.
The Nabucco West proposal involves a 1,300 km, 48 inch diameter gas pipeline that will transport gas from the vicinity of the Turkish-Bulgarian border through Bulgaria, Romania and Hungary to Austria with offtake stations in each transit country.
Nabucco West will follow the same principles as the original Nabucco concept. This means that the pipeline will be designed to be a scalable and multisource natural gas transmission infrastructure. Capacity could be scaled up from 10 Bcm/a up to 23 Bcm/a to respond to demand.
BP said that the decision was made on the basis of the publicly communicated selection criteria announced in 2011.Article continues below…
“In particular, the greater maturity of Nabucco West gave the consortium confidence that this project could be developed and delivered on the same timeline as [Shah Deniz] Stage 2,” said BP. “The consortium will now co-operate with the Nabucco West project to optimise its scope, its technical studies and its commercial offer.”
Based on the same criteria, in February this year the consortium selected the Trans-Adriatic Pipeline (TAP) as the potential route for export of Stage 2 gas to Italy. Since that decision, the Shah Deniz consortium has closely worked with TAP, recently concluding a co-operation agreement with this project.
The Shah Deniz consortium will continue to work with the owners of the two selected pipeline options. Shah Deniz will make a final decision between these projects, and will conclude related gas sales agreements ahead of the Shah Deniz final investment decision planned for mid-2013.
BP said that development of the South East Europe Pipeline project, which had been assembled by Shah Deniz partners in collaboration with Bulgaria, Romania and Hungary, will cease.