NewswireToday - /newswire/ -
Baku, Azerbaijan, 2013/09/19 - Today, Enel Trade, a unit of the Enel Group, has signed a 25-year agreement with the Shah Deniz Consortium to purchase an amount of the gas that will be produced by the Stage 2 of the Shah Deniz field in Azerbaijan - Enel.com. IT0003128367
• Deal is with the Shah Deniz Consortium;
• The volumes purchased are expected to feed Enel’s Italian gas market;
• According to the 25-year agreement, delivery of gas is due to start no earlier than in 2019.
The gas will be transported to Italy through the Trans-Adriatic Pipeline (TAP). Gas supplies from Azerbaijan will be utilized by Enel to feed its Italian market. The deal was signed by Gianfilippo Mancini, Director of Enel’s Generation, Market Italy and Energy Management Division and by Rovnag Abdullayev, President of SOCAR, the State Oil Company of the Republic of Azerbaijan. The agreement will enter into force following the final investment decision on the Shah Deniz Stage 2 project which is set to take place by the end of 2013. The delivery of gas is due to start no earlier than in 2019.
“This agreement successfully fulfills the relationship we have launched time ago with the Shah Deniz Consortium. It marks a step further in our strategy of gas sourcing diversification. The agreement will allow us to enhance our supply contracts portfolio, as well as making it more flexible. This will benefit the free market customers of ‘Enel Energia’ in Italy.” Commented Gianfilippo Mancini, Director of Enel GEM, upon signing the agreement “Over more, through this agreement the Group will contribute to strengthening security and competitiveness of Italy’s gas supplies, in line with the priorities of the Italian energy policy.”
Stage 2 development of the Shah Deniz field lies some 70 kilometres offshore in the Azerbaijan sector of the Caspian Sea. Stage 2 of Shah Deniz will allow the production of 16 billion cubic metres of gas that will be added up to the 9 billion cubic metres already produced by the field’s Stage 1. Through Stage 2 of Shah Deniz, Azeri gas will be delivered to Europe for the first time ever. The new gas will be channeled through more than 3,500 km of pipelines running across Azerbaijan, Georgia, Turkey, Greece, Bulgaria, Albania and under the Adriatic Sea to Italy. These pipelines include the Trans-Anatolian Pipeline (TANAP) that will transport gas across Turkey as well as TAP that will transport gas from the Turkish-Greek border to Italy under the Adriatic Sea.