Azerbaijan expects rise in gas production from 2016

(Reuters) - Azerbaijan expects natural gas output to rise from 2016, when new wells are due to start production, with a further increase seen from 2018, thanks to greater production at its vast Shah Deniz gasfield, a source close to the government said.

"Gas output is set to rise to 29.55 billion cubic metres (bcm) in 2016 and to 29.92 bcm in 2017 from 28.42 bcm expected to be produced in 2015 and 2014," the source told Reuters.

He said 186 new drilling wells were expected to start production in 2016.

Gas output in Azerbaijan rose to 22.6 bcm in the first nine months of 2014 from 21.5 bcm in the same period last year.

Shah Deniz gasfield in the Caspian Sea, operated by BP with partners, holds estimated reserves of 1.2 trillion cubic metres.

Shah Deniz I has an annual production capacity of about 10 bcm of natural gas. The second stage of the field -- Shah Deniz II -- is due to go on line in 2018, producing six bcm destined for the Turkish market.

A further 10-bcm of capacity will be added to Shah Deniz II in 2019, with that gas due to be sold in Europe. 

Bakudaily.Az