Expert: Swap agreement to allow for additional gas supply into SGC

Expert: Swap agreement to allow for additional gas supply into SGC The agreement on swap gas supplies signed between Azerbaijan, Iran and Turkmenistan prepares the ground for the implementation of a direct linkage of the production facilities of Turkmenistan and Azerbaijan in the Caspian Sea
Energy
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December 3, 2021 13:23
Expert: Swap agreement to allow for additional gas supply into SGC

The agreement on swap gas supplies signed between Azerbaijan, Iran and Turkmenistan prepares the ground for the implementation of a direct linkage of the production facilities of Turkmenistan and Azerbaijan in the Caspian Sea, representative of Oxford Institute for Energy Studies (OIES) Julian Bowden told Report.

“A link with a pipeline capacity of 10 bcm per year would allow for sustainable additional gas supply into both Azerbaijan and the Southern Gas Corridor (SGC). The direct link would offer a solution to methane leakages in the Turkmen side of the Caspian Sea,” he clarified, adding that the swap agreement does not reduce the need for a direct Trans Caspian link between Turkmenistan and Azerbaijan.

He noted that the swap agreement allows for a small increase in its export volumes for Turkmenistan and provides Azerbaijan with some of the needed amount of gas.

“Regional energy and gas cooperation is to be highly welcomed,” he concluded.

Azerbaijan, Iran and Turkmenistan signed an agreement on swap gas supplies for up to 2 billion cubic meters per year on November 28.

According to the agreement, from 1.5 to 2 billion cubic meters of gas will be supplied annually from Turkmenistan to Azerbaijan through Iran.

The implementation of the open-ended contract will begin on December 22 this year.

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