Italy calls gas meeting in Baku

BAKU, Azerbaijan, March 4 (UPI) -- Italy called for a high-level meeting with Turkey and Azerbaijan to discuss gas transits from the offshore Shah Deniz gas field.

Italian Deputy Foreign Minister Alfredo Mantica made a proposal for Baku to host a trilateral discussion for gas transits from Azerbaijan as soon as possible, the Trend Capital news agency reports.

Gas production from the offshore Shah Deniz field in the Azeri waters of the Caspian Sea contributes 317.8 billion cubic feet to the 847.5 bcf Azerbaijan plans for 2009.

Azeri Energy Minister Natig Aliyev said his country was positioned to play a major role in European plans to move away from Russian energy dependence. Both ministers said Azerbaijan was integral to the planned $10.7 billion, 2,051-mile Nabucco gas pipeline, which Europe sees as a viable means for energy diversification.

The U.S. Energy Information Administration said 2008 estimates for the first phase of Shah Deniz put gas production at around 304 billion cubic feet. The second phase of Shah Deniz is viewed as a key prospect for Europe, but may cost as much as $10 billion to develop.