Caspian Energy Media — Oil, Gas & Energy News from the Caspian Region

Our aim is to ensure continuous,  safe and reliable operation of gas transportation system
Gaghamali Seyfullayev, General Manager, SOCAR Gas Export Department

Transfer of main gas pipelines sections to SOCAR Gas Export Department has united the systems of natural gas export and its transportation inside the country into a single management structure. The main objective of our department is the rational control of the volumes of natural gas belonging to SOCAR, provision of gas sales on the internal and external markets and conducting technical, technological, metrological and commercial operations according to the requirements of the relevant legislative documents.

To ensure the continuous and safe provision of natural gas to the population and other consumers within the country and to meet the growing demands, large scale works have been launched since last year at the expense of revenues gained from gas export for modernization and reconstruction of the main gas pipelines sections. This is connected with the fact that the priority task for SOCAR along with oil and gas production and refining is their export and transportation. From this point the sections of oil and gas export and transportation are constantly being modernized and overhauled. 

In general, conduct of large-scale works on reconstruction ensures timely fulfillment of contractual terms on gas export.

Reconstruction of main gas pipelines, renewal of outdated technical and technological equipment and gas metering units, automation of technological processes ensure safe and stable work of the existing gas transportation system and, what is the most important, significantly reduce gas losses in process of its transportation.

Natural gas occupies an important place in the fuel and energy balance of the country. SOCAR currently exports Azerbaijani gas to Russia, Georgia and in line with a swap agreement to Iran. 

The main gas pipeline sections of the Gas Export Department received 15,288.1mln cubic meters of gas into the system of main transportation in 2013, including 2,208mln from ACG, 317.4mln cubic meters from operating companies, 7,862.0mln cubic meters from Azneft PU, 4,887mln cubic meters from Shah Deniz, which were directed to the energy corridor of the country for supplies to consumers on the domestic and foreign markets.

Of the received gas, 1,375mln cubic meters were supplied to Russia, 1,037mln cubic meters to Georgia, 424mln cubic meters to Iran, 5.073mln cubic meters to Azerenerji OJSC, 4,827mln cubic meters to Azerigaz PU, 448mln cubic meters to Azneft PU and 1,972mln cubic meters of gas pumped into underground gas storages.

In line with the swap agreement, 350mln cubic meters of gas were transferred to “Nakhchivangas PU” via Iran to meet the needs of the Nakhchivan Autonomous Republic.

In 2013, in the frame of Shah Deniz-1 project, Azerbaijan received 4.8bln cubic meters of gas, Turkey-3.7bln cubic meters, Georgia-0.7bln cubic meters, BTC system – 0.13bln cubic meters. 

In addition, the operating companies functioning in Azerbaijan transferred 317.4mln cubic meters of gas based on the production sharing agreement.

In the first quarter of 2014 the Gas Export Department received 4,565.5mln cubic meters of gas including 551.3mln cubic meters from AIOC, 671.7mln cubic meters from Shah Deniz, 117.2mln cubic meters from operating companies, 3,212mln cubic meters from Azneft PU, which were further transferred to the energy corridor of the country for supplies to the consumers on both the domestic and foreign markets.

Of the received volume of gas, 36.4mln cubic meters were supplied to Russia, 510.3mln cubic meters to Georgia, 129.2mln cubic meters to Iran, 1,452.9 mln cubic meters to Azerenerji OJSC, 2,234.8mln cubic meters to Azerigaz PU and 160.2mln cubic meters to Azneft PU.

According to the swap agreement, 117.5mln cubic meters were transferred to Nakhchivangas via Iran to meet the needs of the Nakhchivan Autonomous Republic.

In the first quarter of 2014, in the frame of Shah Deniz-1 project, Azerbaijan received 0.66 bln cubic meters of gas, Turkey-1.4bln cubic meters, Georgia-0.2 bln cubic meters, BTC system – 0.03bln cubic meters. 

In line with the existing contracts between the Gas Export Department and SOCAR GAS EXPORT-IMPORT, SOCAR Georgia Gas, Georgian Oil and Gas Corporation, supply of natural gas to Georgia continued and volumes of export were defined for the upcoming years. 

Taking into consideration the fact that, SOCAR is a member of the Gas Center of the European Economic Commission of UN, the employees of the Gas Export Department entered information about the macroeconomic indicators of Azerbaijan and SOCAR activity to the database of the center.

On May 15-16, 2013 the Gas Export Department that coordinates the cooperation of the Gas Center under the European Economic Commission of UN and SOCAR held the eighth session of the working group within the framework of the Gas Center ‘Supplies, Infrastructure and Markets’. The gas potential of Azerbaijan and SOCAR’s activity were stressed during the event held with participation of representatives of delegations from 12 countries, as well as famous international energy sector analysts.

The analyses conducted by the Shah Deniz consortium showed that TAP project was economically more attractive and expedient. After giving preference to the TAP project as an export route to Europe on June 28, 2013, Shah Deniz consortium estimated the prices, volumes and other contractual aspects, proposed by the buyers, whereafter 9 buyers obtained the right to purchase gas within the Shah Deniz-2 project. The remaining issues regarding financing and ensuring guarantees were fully solved with the selected buyers within the framework of agreements until mid September. Thus, on September 19, 2013 contracts on purchase of definite volumes were signed for the term of 25 years with the consumers of Shah Deniz-2 gas supplied to the European markets by TAP. 

All the same, the final investment decision on supply of gas from Shah Deniz-2 to the European markets was signed on December 17, 2013. 

The Gas Export Department carried out several works in 2013 for the rational use of natural gas, stability of the gas transportation system, ensuring safe receipt, transportation and distribution of gas, development of gas infrastructure.

Complex works on reconstruction of existing gas distribution system and improvement of the gas supply to population are held as part of the state programs on socio-economic development of regions, Baku and surrounding settlements. Stable and operative execution of these works is a priority task of the policy of material and technical supply of the Gas Export Department. The importance of material and technical base is defined in processes of the rational management of natural gas volumes, natural gas sales on the foreign and domestic markets and inadmissibility of failures during supplies of essential goods and materials to the relevant areas.

A new technological section (250mm) consisting of two lines was mounted on the Gazakh interstate gas metering unit for the regulation of the required mode and accurate record of natural gas export to Georgia. 

The 6.2km section of the Gobustan-Shirvan main gas pipeline (530 mm in diameter) and 4km section of the Yalama-Khudat gas pipeline were replaced with new pipes and connected to existing gas pipelines.

The morally outdated gas aggregates of the Siyazan compressor station were renewed with new thus bringing the station into a serviceable state. Regulatory works were held on the Astara and Garadagh compressor stations.

69 new gas regulating facilities, 24 protective valves, 81 taps and 316 chests were installed for the regulation of pressure on gas pipelines and gas distribution stations.

5 gas separators, 3 filters and 17 gas heating ovens were installed to purify gas of liquid and solid mixtures on gas distribution stations. 66 new gas meters units have been installed and commissioned in order to ensure the accurate record of transferred gas in line with the requirements of the standard documents. 

The issue of stable power supply to the objects of the main gas pipeline sections is also in focus. Thus, three gas distribution stations, two gas regulating points, two metering units have been reconstruction on the main gas pipeline sections. In addition, the energy supply of Garabaghly was reconstructed and electricity was supplied to the objects. Necessary requirement was purchased for reconstruction of 35/10 KV substation for Siyazan.

Prophylactic repair and installation and lubrication works were held on existing linear cranes and boxes of the gas distribution stations and gas regulation points. 51 different size ball valves were purchased in general and in line with the assignments they were transferred to the sections, while 418 valves and boxes were replaced with new ones. 

According  to the compiled plan and schedule, works on revision and technical and metrological services were carried out in the system of the Department’s gas transportation. The meters units, calculation and metering equipment, including 313 electronic flow meters and 314 transit industrial meters operated by the automatic gas distribution stations, gas distribution stations, gas regulating points, interstate gas metering stations, gas metering units between the sections underwent revision and thus passed the state inspection in line with the existing requirements of the regulatory documents. To ensure control of their proper operation, repair, maintenance, regulation and exclude external interference in line with the instruction, they are sealed with special numbers. The new metering units are installed in line with the project estimate, while 35 metering units that do not comply with the standard requirements were replaced. Due to the seasonal work, 260 constriction devices (diaphragms) were replaced with new ones on the metering units in line with the expendable parameters. 

15 process-stream gas chromatographs were installed in the areas of main gas pipeline sections maintenance for factual definition of the physical and chemical features of gas and accurate record of gas flow. Thus, the gas parameters are analyzed in the online mode, entered to the memory of electronic flow meters, thus ensuring accurate record of gas flow.

Technical and metrological maintenance of metering devices, metering and calculation equipment, process-stream gas chromatographs, pycnometers, analyzers of humidity and serum content of gas installed on five strategic points of receipt and delivery including on interstate metering units in Gazakh, Shirvanovka, Astara, Julfa and Sangachal main facilities (Azeri-Chirag-Guneshli). 

Numerous gas meters units of the main gas pipelines sections were improved. All the same, new metering lines were installed, provision with calculation and metering means was ensured, reserve metering lines were restored. Consumers connected directly to the main gas pipelines were grouped between the gas distribution networks, new collectors were created for industry and population, receipt and acceptance of gas via a meter was ensured. As a result, 101 transit industrial meters were taken off the list. 

The Gas Export Department pays constant attention to issues of labor protection, security and environmental protection. All works in this direction are carried out in line with the Single unit of labor protection control in oil industry of Azerbaijan, environmental legislation of the country and international quality control system. 

Owing to organization of the activity complying with international management standards, raising quality of work, improvement of technical documentation and bringing them into compliance with world standards, the department has again been honored with the certificate ISO 9001 (quality management system), ISO 14001 (environmental management system) and OHSAS 18001 (labor security and Technical Security System).