Page 6 - MEOG Week 17 2021
P. 6
MEOG PIPELINES & TRANSPORT MEOG
Flow of Shah Deniz gas to Turkey
stops as contract expires
TURKEY THE flow of gas from Azerbaijan’s offshore Shah matter told the media outlet that given the very
Deniz I gas field to Turkey has reportedly been close relations between Turkey and Azerbaijan,
halted since the 6.6bn cubic metres/year (bcm/ it was likely that the contract would be renewed,
yr) contract signed in 2001 expired earlier this but that the terms may be different from the con-
month. tract that recently ended.
S&P Global Platts quoted a source as saying Meanwhile, a spokesman for the operator of
talks were continuing between Turkey’s state gas the TANAP pipeline, which since 2018 has trans-
importer Botas and the Azerbaijan Gas Supply ited Azerbaijani gas from the Shah Deniz II field
Company (AGSC), the company representing to Turkey under a separate contract for 6 bcm
the Shah Deniz consortium, over a possible con- per year, reportedly said the link was operating
tract renewal. normally.
However, the source was cited as pointing out The past two years have seen Ankara endeav-
that with the arrival of milder spring weather, our to shift from reliance on importing gas by
gas demand in Turkey is falling, which - coupled pipeline under long-term contracts indexed to
with the availability of other import options the crude oil price.
such as spot LNG - means the supply freeze was It has partly done so by reducing dependence
unlikely to cause any issues. on imported gas for power generation and by
Two other sources with knowledge of the increasingly importing cheap spot LNG.
P6 www. NEWSBASE .com Week 17 28•April•2021
