GDF SUEZ signs its first long term contract for Azerbaijani gas
GDF SUEZ announces the signing of a natural gas long-term contract with the Shah Deniz Consortium1, to be sourced from the stage 2 of the Azerbaijani giant field of Shah Deniz, in the Caspian Sea. The Group contracted volumes of 2.6 Bcm/year, for a period of 25 years. First deliveries are due to start in 2019 at the earliest2.
As a new source for Europe, natural gas from Shah Deniz 2 meets GDF SUEZ’s strategy of diversifying its supply portfolio and securing competitive gas for its customers throughout Europe. With this long term commitment, GDF SUEZ contributes to the opening of a new import route to Europe, known as the “Southern Corridor”. This strategic project will foster the diversification of gas routes and supply sources by connecting the European gas markets with the large gas reserves of the Caspian Basin.
GDF SUEZ is already involved in the energy sector in Azerbaijan alongside SOCAR, the country’s national oil and gas company, through the development of the Absheron gas field3.
Jean-François Cirelli, Vice Chairman and President of GDF SUEZ, commented: “Azerbaijan is setting itself up as a new supplier of European gas markets. For GDF SUEZ, this contract for Shah Deniz 2 gas strengthens the currently developing relationship with Azerbaijan, which we trust will be fruitful in the future. Furthermore, as a buyer, GDF SUEZ contributes to enabling the implementation of this new “Southern corridor” for gas, called for by the industry and EU authorities. This new long-term contract confirms our confidence in the key role of natural gas in the European energy mix for the future and our willingness to provide our customers with competitive gas”.
1 Equity shares: BP, Statoil: 25.5% each, SOCAR, Total, Lukoil, NICO: 10% each, TPAO: 9%.
2 Gas Sale Agreement is subject to Final Investment Decision.
3 GDF SUEZ holds 20% of the Absheron field license. This field is situated in the Caspian offshore of Azerbaijan, not far from Shah Deniz. Shareholders of the consortium include Total and the national Oil and Gas company SOCAR, for 40% each.
GDF SUEZ develops its businesses (power, natural gas, energy services) around a model based on responsible growth to take up today’s major energy and environmental challenges: meeting energy needs, ensuring the security of supply, fighting against climate change and maximizing the use of resources. The Group provides highly efficient and innovative solutions to individuals, cities and businesses by relying on diversified gas-supply sources, flexible and low-emission power generation as well as unique expertise in four key sectors: independent power production, liquefied natural gas, renewable energy and energy efficiency services.GDF SUEZ employs 138,200 people worldwide and achieved revenues of €82 billion in 2012. The Group is listed on the Paris, Brussels and Luxembourg stock exchanges and is represented in the main international indices: CAC 40, BEL 20, DJ Euro Stoxx 50, Euronext 100, FTSE Eurotop 100, MSCI Europe, ASPI Eurozone, Euronext Vigeo Eurozone 120, Vigeo World 120, Vigeo Europe 120 and Vigeo France 20.