Azernews.Az

By Gulgiz Dadashova

Montenegro, by becoming a part of such a large energy project as the Southern Gas Corridor, will ensure long term energy stability for the ultra-reliable supplier.

Montenegrin President Filip Vujanovic made the remarks at the signing ceremony of the final investment decision on the project of the second phase of the Shah Deniz gas condensate field development in Baku on December 17.

It is very important for Montenegro to become a part of the large gas corridor from the strategic, energy and economic points of view, the president said.

"This corridor will improve the favourable investment climate in Montenegro that will create opportunities for new investments and partnerships," Vujanovic added.

"The people and economy of Montenegro will get a cheap source of energy that will improve the economic and living conditions of the population. As a country through which the gas will be transported, Montenegro will also receive significant financial profit. Together with the other signatories to the memorandum, our country will contribute to achieving the objectives of the European energy community which aim to diversify transport routes, sources and to achieve a high level of security of supply, particularly to South East Europe," the president said.

The Montenegrin president also expressed his deep gratitude to Azerbaijan and personally to President Ilham Aliyev.

Furthermore, Vujanovic expressed satisfaction with the cooperation with the State Oil Company of Azerbaijan (SOCAR), adding that Montenegro is establishing a strong economic partnership.

In this regard, he recalled the complex which is being built by SOCAR in the resort area of Kumbor , will, according to Vujanovic, be one of the most beautiful complexes on the Adriatic coast.

Southern Gas Corridor is a major project, which is designed to meet the European gas needs for decades to come.

The gas which will be produced in the second phase of Shah Deniz field, is considered as the main source of the Southern Gas Corridor project. A consortium of Azerbaijani Shah Deniz gas condensate field development announced its choice of the TAP project in late June, as a gas transportation route to the European markets.

The final investment decision on Shah Deniz-2 project was adopted in Baku on Dec.17.
Shah Deniz-2 project authorization means the transition of the project from the concept into an immediate implementation stage.

Shah Deniz reserves are estimated at 1.2 trillion cubic meters of gas. The cost of the second phase of development of Shah Deniz gas condensate field is estimated at $25 billion.

Within the second phase of development it is planned to produce some 16 billion cubic meters of gas, six billion of which will be transported to Turkey and ten billion to Europe.