BP to Consider New Pipeline to Transit Caspian Natural Gas to EU

A BP Plc-led group may consider a another pipeline project to transit natural gas from the Shah Deniz deposit in the Azeri sector of the Caspian Sea, potentially rivaling the European Union-backed Nabucco proposal.

The new route will connect Turkey to southeast Europe, Tamam Bayatli, a spokeswoman for BP in the Azeri capital, Baku, said by phone today.

“We are interested in low costs and, technically, the pipeline should be expanded when needed,” Bayatli said.

The new route may compete with Nabucco, which is vying for Caspian fuel supplies with the smaller Trans-Adriatic Pipeline planned by Statoil ASA (STL), a partner in Shah Deniz, and EON AG, and the ITGI link proposed by Edison SpA (EDN) and Depa SA.

Azerbaijan will be able to supply 10 billion cubic meters of gas a year to Europe when the Shah Deniz 2 offshore deposit comes on stream in 2017, Elshad Nasirov, vice president of State Oil Co. of Azerbaijan, said this month.

Source: Bloomberg