Azerbaijan Celebrates 201bn m³ Output

Since independence in 1992, Azerbaijan has now produced 201bn m³  of gas, as of June. Of that, half was produced after 2012, Socar first vice Khoshbakht Yusifzadeh told NGW. The first 100bn m³  took 20 years, three times longer than the second 100bn m³  while the third 100bn m³ will take five years and the fourth, just three.

He said the share of associated gas in Azerbaijan’s total gross production is 46%, but the ratio would decrease significantly with the second phase of Shah Deniz (SD2), Absheron, Umid, Bulla Deniz and the dry gas layer of Azeri-Chirag-Guneshli Block (ACG), which will together add about 22-23bn m³ /yr to the country’s sale gas production level.

The ACG block’s total associated gas output stood at 135bn m³ from 1998 to 1H 2017, of which 40bn m³ were sales gas and the rest was re-injected to maintain oil production, he said.

Gas production from ACG, bn m³/yr. Source: Socar, BP (operator)

Though ACG has the biggest share in the country’s gross gas output, the cumulative sale gas production at Shah Deniz stage 1 (SD1) stood at 83.46bn m³ during its operational period (2006-1H17), of which 47.05bn m³ went to Turkey and 6.35bn m³ to Georgia, Yusifzadeh added. About 36% of produced gas from SD1, or 30bn m³, was used in Azerbaijan. The Socar vice president added that after seven years of relying on Russian gas, Azerbaijan stopped imports in 2007, thanks to SD1. “SD1 also supplied the Georgian market,” he added. Initially, the nominal production capacity of SD1 was 8.6bn m³/yr, but it grew to 10bn m³ in 2013 and has now reached 11bn m³/yr.

Source Socar, BP. (bn m³/yr)

Half-year results

Azerbaijan’s gross gas output was over 14.13bn m³ in 1H 2017, about 5.4% less than the same period last year. Coming to sale gas production, the figure reached 9.343bn m³ in the first half of year, which indicates only 0.2% decline year-on-year, according to an official document, seen by NGW.

Source: Socar

The statistics indicate that the country’s sale gas production remained almost flat, despite significant decrease in gross production in 1H17. The reason is that the sale gas deliveries from SGC increased by 453mn m³, or 34.5%, so less gas was re-injected to the block.

According to another document, prepared by energy ministry and seen by NGW, Azerbaijan exported 3.217bn m³ of gas to Turkey and 1.148bn m³ to Georgia from SD1 in the first half of the year. During this period, about 906mn m³ of gas were also injected to underground storage facilities. The country also imported 787mn m³ of Turkmen gas through Iran. Azerbaijan started Turkmen gas import on October 2016 and last year the total reached 298mn m³.

Ilham Shaban