British energy giant
) led Shah Deniz consortium has started appraising the final
offers with respect to transportation options it received from
the Nabucco Gas Pipeline International and Trans Adriatic
Pipeline (TAP) for Shah Deniz Stage 2 gas to Europe.
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The Shah Deniz consortium is now entering the detailed assessment
phase wherein each of the transportation proposals will be
evaluated thoroughly. The analysis will help in deciding the
ideal export route to Europe based on pre-established selection
The selection criteria include commerciality, project and
financial deliverability, engineering design, alignment and
transparency, operability, scalability and public policy. The
consortium is likely to make a final decision on the European
pipeline by the end of Jun 2013.
The transportation offers comprise extensive information relating
to the technical, regulatory, financial and other aspects of the
Nabucco West and TAP projects. The offers were expected to become
official this month. Moreover, binding gas sales offers from
prospective gas buyers are also anticipated in April.
BP is the operator of Shah Deniz II. Other partners in the
project are Lukoil,
) as well as Socar, Turkiye Petrolleri and Naftiran Intertrade.
The project will open up the Southern Gas Corridor by
transporting gas from the Caspian Sea to markets in Turkey and
Europe. Shah Deniz Stage 2 is estimated to augment gas production
by another 16 billion cubic meters per year (bcma) from about 9
bcma from Shah Deniz Stage 1.
Located about 70 kilometers offshore in the Azerbaijan sector of
the Caspian Sea, the Stage 2 development of the Shah Deniz field
is projected to consist of two new bridge-linked production
platforms, 26 subsea wells to be drilled with 2 semi-submersible
rigs, 500 kilometers of subsea pipelines, a 16 bcma upgrade for
the South Caucasus Pipeline and the Sangachal Terminal.
Additional pipelines will be put up and extended to carry gas
from Shah Deniz through Turkey and Europe.
BP holds a Zacks Rank #3 (short-term Hold rating). However, the
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Range Resources Corporation
) is expected to outperform the market over the next few months.