Gas perspectives of Azerbaijan

A more favorable situation is taking place in the Azerbaijani gas industry in the long-term perspective as compared with the oil sector. The key expectations are connected with implementation of the second stage of the Shah-Deniz project with total volume of investments in the amount of up to $45 billion by the end of 2018, for which the export infrastructure in the European direction is created.

At the same time, in the medium-term perspective the total production of natural gas in the country will be stabilized at the level of no more than 30 billion cubic meters because of insufficient free producing capacities. The situation is unlikely to be changed by planned increase of the production within the first stage of the Shah-Deniz to 10.4 billion cubic meters in the current year, and fall of producing wells’ yield may amend this plan. The total production of commercial gas won’t exceed 19 billion cubic meters.

As a comparison, in 2012, 26.9 billion cubic meters were extracted in the country (including 7.73 billion cubic meters from the Shah-Deniz), 17.2 billion cubic meters of which fell on commercial gas. On the results of 2013, the total production is preliminary estimated by SOCAR at 29.5 billion cubic meters.

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