Below is my latest article for Natural Gas Europe. Original here.
The news that BP’s Shah Deniz project in Azerbaijan will be exempted from sanctions on Iran is not all that surprising: however, it does shed light on the complexity of Europe’s gas supplies, and offers a hint of what the future could hold.
The Shah Deniz gasfield in the Caspian Sea is controlled by a consortium led by BP, which also includes a number of international firms, and, crucially, the Naftiran Intertrade Company. The huge project is key to the EU’s plan to bring Caspian gas to Europe, with over 1 trillion cubic metres of natural gas in place. The second phase, supplying 16bcm a year, is expected to come onstream by 2017.