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    Engie Shares Azeri Gas Contract with Shell


Some of the gas Engie had agreed to buy from Azerbaijan's Shah Deniz field will go to Shell instead.

by: Dalga Khatinoglu

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Engie Shares Azeri Gas Contract with Shell

France's Engie, Anglo-Dutch Shell, Azerbaijan's state-run Socar and Azerbaijan Gas Supply (AGSC) have agreed on a partial transfer of Engie’s Shah Deniz gas supply contract to Shell, Socar announced on September 10.

AGSC was established by Socar and its partners at the Shah Deniz gas project to sell gas from the field to markets in Azerbaijan, Georgia, Turkey and Europe via the Southern Gas Corridor (SGC).

Engie and Shell’s subsidiary Shell Energy Europe entered into supply contracts for Shah Deniz's gas in 2013. Under this latest agreement, Shell is significantly increasing the availability of gas for its customers by acquiring part of Engie's 25-year contract.

Shah Deniz's second-stage development is due to start supplying 10bn m3/yr of gas to Europe in mid-2020. Engie had agreed to take 2.64bn m3/yr, while Shell had signed for 0.95bn m3/yr. Socar did not elaborate how much of Engie's contractual volumes would be passed to Shell, but said it remained a significant buyer of Shah Deniz's gas itself.