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Penspen awarded feasibility study for AGRI LNG project

LNG Industry,

AGRI LNG Project Company SRL and Penspen Ltd have announced that they have signed a contract for the Azerbaijan-Georgia-Romania-Hungary Natural Gas Interconnector Project (AGRI) feasibility study. This is a result of the international tender conducted by AGRI LNG SRL.

The feasibility study will be conducted by Penspen Ltd and will include:

  • Gas market and gas supply analysis.
  • Development of conceptual engineering for pipelines and LNG terminals.
  • Economic and financial analysis.
  • Risk assessment and environmental aspects.

Work has started on the feasibility study, which is scheduled for completion by November 2012.

Penspen’s Director of Onshore, Michael Simm, said: “We are delighted to have won this prestigious international study which will build further on our longstanding experience and reputation in this area. AGRI has the potential to open the way for Azerbaijani gas exports into Central Europe and we look forward to supporting this important project.”

The AGRI project will construct new liquefaction and regasification terminals on the Black Sea coasts of Georgia and Romania respectively. Based on a linear east-west LNG chain, the project is intended to transport and market Azerbaijani and other Caspian region natural gas to Romania, Hungary and other central European and EU gas markets.

AGRI LNG SRL’s current shareholders are the national oil and gas companies from each of the four countries involved in the project, namely Romgaz (Romanian National Natural Gas Company), SOCAR (State Oil Company of The Republic of Azerbaijan), GOGC (Georgian Oil and Gas Corporation) and MVM (Hungarian Electricity Company Plc). These shareholders hope that the AGRI project will be an important component of the EU Southern Corridor for Caspian Gas to Europe and will play an important role in the EU’s future energy security.

Adapted from press release by Callum O'Reilly

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