Prospective collaboration on biomethane, hydrogen and sustainable mobility. Possible developments regarding delivery of green gas through the Southern Gas Corridor including the Trans Adriatic Pipeline (TAP)
Rome, 20 February 2020-Snam, one of the world’s leading energy infrastructure companies, and SOCAR, a State-owned energy company of the Republic of Azerbaijan operating in Azerbaijan and other countries, signed a cooperation agreement today to study the development of renewable gases and use of sustainable energy, with a view to their delivery through the Southern Gas Corridor including Trans Adriatic Pipeline (TAP) in the future. Both companies own a 20% stake in TAP and SOCAR is a major shareholder of the other Southern Gas Corridor projects.
The agreement was signed today in Rome by the representatives of Snam and SOCAR, in the presence of Italy’s prime minister Giuseppe Conte and the president of the Republic of Azerbaijan Ilham Aliyev, during the Azerbaijani State visit to Italy.
The agreement between Snam and SOCAR involves collaboration in the areas relating to the energy transition and circular economy:
- researching and promoting the use of biogas and biomethane, including the potential creation of anaerobic digestion plants. The expertise of Snam’s subsidiary, IES Biogas, can be applied for the design and construction of these plants. Snam and SOCAR plan to evaluate potential co-investment opportunities in this regard;
- promoting sustainable mobility using compressed natural gas (CNG), liquefied natural gas (LNG) and hydrogen (H2), through the development of new distribution stations, potentially involving Snam’s subsidiary, Cubogas. There is also the possibility of launching partnerships with car manufacturers and developing the retrofit market;
- studying the opportunities for developing hydrogen production and related infrastructure.
Marco Alverà, Snam’s CEO, said: “Through this project, Snam and SOCAR aim to contribute to the energy transition and circular economy in Azerbaijan, strengthening collaboration between our two countries. Furthermore, the development of biomethane and hydrogen could offer new opportunities for the delivery of renewable gases through the Southern Gas Corridor and the TAP pipeline, thereby improving environmental sustainability alongside security and flexibility of supply”.
Rovnag Abdullayev, SOCAR’s president, said: “SOCAR has been taking significant steps in its operations to minimize negative impact on the environment. The cooperation agreement signed today is an important step towards sustainability in the energy industry, aimed at development of a greener economy and to curb global warming, in order to sustain life and prosperity”.
On February 19, SOCAR and Sumgait Technology Park (STP) signed a joint venture agreement. The new joint venture, called SOCAR-STP, will manage the production of the largest mechanical equipment workshop and heavy crane plant in the CIS region. The agreement was signed by Emin Mammadov, General Director of STP and Yashar Latifov, SOCAR Vice President. SOCAR President Rovnag Abdullayev attended the signing ceremony.
The establishment of a joint venture aims to improve cooperation between the global brand of SOCAR and Sumgait Technology Park, one of the country's largest industrial complexes, to further develop the material and technical base in the oil and gas sector and ensure the use of advanced technologies, technical services and expert exchanges. The joint venture aims to increase local production capacity to meet international standards, to become a leading and competitive company offering oil and gas equipment and technology services in the CIS and broader markets.
The key strength of the new joint venture is the combination of professional and experienced technical personnel, industry competencies and modern equipment that meet current market requirements.
The main activities of SOCAR-STP will be drilling equipment, drilling operations, drilling operations, rotary and pressure equipment, fountain fittings, APS (Advanced Parts Solution), heavy cranes, maintenance and repair.
SOCAR President Rovnag Abdullayev said at the signing ceremony that the new facility will create conditions for symbiosis in engineering and mechanical engineering. The main expectation of the new venture is to be successful in open tenders with high quality and competitive operation, and to become a competitive company in both Azerbaijan and other markets. Health, safety and environmental protection will be the top priorities for the newly created company.
SOCAR and STP signed a Memorandum of Understanding on December 10 last year during the Energy Forward event and a joint venture was established today.