French Engie shared Azerbaijan’s gas contract with Anglo-Dutch Shell

Baku, September 11 - Neftegaz.RU. ENGIE, Shell, Azerbaijan Gas Supply Company (AGSC) and SOCAR have agreed on a partial transfer of ENGIE’s Shah Deniz gas supply contract to Shell Energy Europe Limited.

ENGIE and Shell Energy Europe both previously secured gas supply from Azerbaijan’s Shah Deniz gas project under contracts signed in 2013. Under this latest agreement, Shell Energy Europe is significantly increasing the availability of gas for its customers by acquiring part of ENGIE’s 25-year contract.

ENGIE remains a significant buyer of Shah Deniz gas and conducts, as a mid-streamer, a dynamic optimization of its long-term position.

The transfer agreement, signed on September 5, 2019, covers supplies of Azerbaijani gas that will begin flowing into Italy upon completion of the Trans Adriatic Pipeline.

AGSC was established by Shah Deniz PSA partners and SOCAR as the marketing company to sell gas produced from the Shah Deniz field to markets in Azerbaijan, Georgia, Turkey and Europe through the Southern Gas Corridor.

Shah Deniz Stage 2 is a giant project that will add a further 16 billion cu m per year (bcma) of gas production to the approximately 10 bcma produced by Shah Deniz Stage 1.