EU welcomes investment decision for gas project in Azerbaijan

The European Commission welcomed Tuesday's final investment decision (FID) on extracting gas from the Shah Deniz II gas field in Azerbaijan. With this long-awaited decision, it is confirmed that Europe will get 10 billion cubics metres (bcm) per year starting from end 2019, said the EU's executive body in a statement. An official signing ceremony was held in Baku today in the presence of Azerbaijan's President Ilham Aliyev, EU Energy Commissioner Gunther Oettinger and others. More than 18 billion Euro will be invested in platforms and subsea wells to extract 16 bcm of gas in water depths of 500 meters in the Caspian sea. Following earlier agreements, starting from the end of 2019, 6 bcm gas will be delivered to Turkey and 10 bcm to Europe, it said. EU Commission President Jos{ Manuel Barroso commented that: "Today's decision by the Shah-Deniz-II-Consortium is a strategic door opener for stronger European energy security. Building on the Joint Declaration I signed with President Aliyev in January 2011, this important step will give the EU direct access to gas from the Caspian basin." "This is a major milestone for the diversification of our energy supplies, to the benefit of European consumers and businesses," he added. On his part, EU Energy Commissioner Gunther Oettinger said: "This decision to open the Southern Gas Corridor is a real breakthrough. Through its further enlargement, the corridor will have the potential to meet up to 20 per cent of the EU's gas needs in the long term.