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    Azeri Gas Output Rises


As the expanded Southern Gas Corridor makes its way westward, Baku is capturing more downstream value.

by: Dalga Khatinoglu, Ilham Shaban

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Azeri Gas Output Rises

Azerbaijan produced 12.21bn m3 sale gas in the first half of 2019, about 37.5% more than 1H 2018, according to statistics that NGW obtained from the government July 12.

With the growth of flows through the Southern Gas Corridor through Turkey and Greece, phases 1&2 of the BP-led Shah Deniz project produced 8.4bn m3 together, or 67% more than 1H 2018, while state-run Socar itself produced 2.87bn m3.

The BP-led Azeri-Chirag-Guneshli oil block also delivered 0.94bn m³ of associated gas to Baku, 17.6% less than 1H 2018.

Socar purchased 3.5bn m3 of Shah Deniz gas 1H 2019, about 260% more than the same period in the last year. It stopped imorting Turkmen and Russian gas in the first half of year, while it imported 1.41bn m3 in the same period of last year and 780mn m3 in the same period 2017.


Azerbaijan exported 4.2bn m3 gas to Turkey in 1H 2019 (36% growth). Overall, since the start of the TransAnatolian Pipeline, Azerbaijan has delivered 1.868bn m3 of Shah Deniz stage 2 gas to Turkey.

Socar also sold its first retail gas in Turkey at 38.7mn m3 in June, the government source told NGW. Recently Socar purchased German EWE's assets in Turkey, enabling it to retail in Turkey. About 0.4bn m3 of Shah Deniz gas were delivered to Georgia (up 7.8% year-on-year), of which half was the transit fee. Azerbaijan delivers 5% of its gas exports to Turkey as transit fee to Georgia. Socar also increased exports to Georgia by 7.7% to 715.5mn m3 in 1H 2019.