Southern Gas Corridor to attract about $7B
By Fatma Babayeva
The Southern Gas Corridor project, designed to supply Caspian gas to Europe, intends to attract investments worth $7 billion.
The remark was made by Rovnag Abdullayev, President of Azerbaijan's state-owned energy company SOCAR on May 11.
Abdullayev went on to say that work is underway in this direction. “In general, SOCAR works with the European Investment Bank, the European Bank for Reconstruction and Development and the Asian Development Bank in this regard.”
The SGC project has already attracted $1 billion thanks to the placement of eurobonds, SOCAR’s president said, adding that it is expected to attract additional $1.5 billion by the end of 2016.
The EIB is expected to allocate $1.12 billion for the project.
Moreover, the World Bank’s Board of Directors will approve the allocation of a loan worth $1 billion for Turkey to finance the Trans Anatolian Natural Gas Pipeline's construction on July 7.
Natural gas produced in Shah Deniz 2 field located in the Azerbaijan’s section of the Caspian Sea is envisaged to be transported to Europe via the Southern Gas Corridor.
The pipeline network will stretch across 3,500 kilometer area from the Caspian Sea into the Europe.
Within the framework of the project, the existing infrastructures will be upgraded and a chain of new pipelines will be developed.
Existing South Caucasus pipeline will be expanded with a new parallel pipeline through Azerbaijan and Georgia. Construction of Trans-Anatolian (TANAP) and Trans-Adriatic pipelines (TAP) are main elements of this project.
TANAP will pass through Turkey and join to TAP pipeline in the Greece border. Meanwhile, TAP will pass through Greece, Albania and southern part of Italy.
Worth noting, the launching ceremony of TAP pipeline will take place in Greece on May 17.
First gas delivery to Georgia and Turkey via SGC is scheduled for late 2018. However, gas deliveries to Europe are expected a year after the first gas is produced in offshore fields of Azerbaijan.
The SGC is one of the biggest construction projects of our times with a value of $45 billion which aims to improve the energy security of the EU and diversity its energy supply routes.
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Fatma Babayeva is AzerNews’ staff journalist, follow her on Twitter: @Fatma_Babayeva
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