The Nabucco West project, preferred over BP’s own South East Europe Pipeline (SEEP) project, entails building the pipeline from the Turkish-Bulgarian border to Baumgarten, Austria.
BP Azerbaijan, Georgia and Turkey Region president Rashid Javanshir said, "This represents another important milestone in the development of Shah Deniz Stage 2 and the transportation of gas resources from the Caspian to Europe."
SOCAR president said Rovnag Abdullayev said this decision constitutes a significant step towards implementation of the Southern Gas Corridor Strategy which would serve the strategic interest for sustained energy security of European countries as well as Azerbaijan, Georgea and Turkey.
"This indicates the growing role of Azerbaijan as an enabler to provide diversified energy resources to European market," he added.
The consortium has selected the Trans-Adriatic Pipeline (TAP) as the potential route for export of Stage 2 gas to Italy in February, and now plans to initiate studies and optimise scope and a commercial offer for Nabucco West project.
A final decision by Shah Deniz related to these two projects is due after which gas sales agreements will be concluded, prior to the final investment decision planned for mid 2013.
Shah Deniz Stage 2 project will export gas from the Caspian Sea to Turkey and European markets, opening up the Southern Gas Corridor, with first gas exports targeted by the end of 2017.
Stage 2 development of the Shah Deniz field offshore in the Azerbaijan sector of the Caspian Sea, envisages the construction of two new bridge-linked production platforms, 26 subsea wells, 500km of subsea pipelines and expansion of the Sangachal Terminal.
Gas to be produced from the Shah Deniz Stage 2 development is expected at 16 billion cubic meters per year (bcma), adding to the 9 bcma from Shah Deniz Stage 1.
