Barcelona-based Gas Natural Fenosa signs a supply contract with Azerbaijan for the next 25 years
The Catalan company has signed an agreement with the Shah Deniz consortium for a 25-year period. The Azerbaijani company will supply 1bcm of natural gas per year. The agreement is conditional on the final decision on the project investment, a step planned for later this year. The development of this project will open a new supply route to Europe through the ‘Southern Corridor’, which will allow Europe to access gas reserves in the Caspian Sea area. Barcelona-based Gas Natural Fenosa will receive the gas in facilities based in Italy, one end of the European gas pipeline passing through Georgia, Turkey, Greece, Albania, and crossing the Adriatic Sea. The Catalan company said that this supply will consolidate its presence and strengthen its gas supply business in Italy.
Barcelona (ACN).-The Catalan company Gas Natural Fenosa anounced on Thursday that it has signed an agreement for the supply of 1bcm of natural gas per year for the next 25 years in Baku, capital of Azerbaijan. Barcelona-based Gas Natural Fenosa will receive the gas in facilities based in Italy, one end of the European gas pipeline passing through Georgia, Turkey, Greece, Albania, and crossing the Adriatic Sea. The development of this project will open a new supply route to Europe through the ‘Southern Corridor’, which will allow Europe to access gas reserves in the Caspian Sea area. The Catalan company said that this supply will consolidate its presence and strengthen its gas supply business in Italy. The agreement is conditional on the final decision on the project investment, a step planned for later this year.
Once he contract is finally in place, Gas Natural Fenosa “will strengthen” its gas marketing business in Italy and diversify and enhance the basic energy supply structure for its geographical expansion throughout Europe. Currently, Gas Natural has more than 400,000 customers in Italy and a distribution network of over 6,900 kilometers.
The gas will come from the Shah Deniz deposit (Shah Deniz II) in Azerbaijan, specifically from the development of its second phase. Shah Deniz II is a facility operated by the oil company BP and is currently one of the largest gas extraction projects in the world. The development of this project will open a new supply route to Europe through the ‘Southern Corridor’, which will allow Europe to access gas reserves in the Caspian Sea area. The ‘Southern Corridor’ is “a key element” of the European Union energy policy to increase the level of supply security in Europe.