Southern Gas Corridor to ensure real diversification
By Trend
The Southern Gas Corridor project, which envisages transportation of Azerbaijani gas to Europe, will ensure real diversification of supplies to Europe, Francis Perrin, Senior Fellow at the OCP Policy Center (Rabat) and Senior Research Fellow at the French Institute for International and Strategic Affairs (IRIS, Paris), told Trend.
“The Southern Gas Corridor will allow for the first time Europe (Turkey and the European Union - EU) to import natural gas from the Caspian Sea region. One of the priorities of the Energy Union, adopted in 2015 by the EU, is to diversify its gas supplies as Russia is its dominant supplier with a market share of about 35 percent. The Southern Gas Corridor is a key part of this energy strategy,” he added.
Perrin believes that the Southern Gas Corridor represents a real diversification as it opens a new source of gas imports, which will begin in 2020 for the EU.
Perrin noted that Azerbaijan has repeatedly expressed its willingness to supply part of its natural gas to the European market through the development of the Phase 2 of the supergiant Shah Deniz field in the Caspian Sea and of the Southern Gas Corridor.
“At a later stage this country could increase its gas supplies to the EU thanks to other developments, including Absheron. Azerbaijan has a very good working relationship with several large European oil companies such as BP, Total, Eni and Equinor (formerly Statoil, Norway). Exploration is going on in the Azerbaijan offshore and international oil companies think that new gas (and oil) discoveries and developments are likely,” he noted.
The expert said that the Southern Gas Corridor will allow the export of 16 billion cubic meters of gas per year from 2020 to Turkey and the EU.
“In terms of volumes it is much less than for the TurkStream and Nord Stream 2, whose export capacities would be 31.5 bcm/year and 55 bcm/year respectively. But volumes could increase over time with new developments in Azerbaijan and perhaps other projects in the Caspian Sea region. Moreover the Southern Gas Corridor is a real diversification of gas supplies for the EU and not only the transport of Russian gas through other export routes. It is a key difference,” he added.
The Southern Gas Corridor, worth over $40 billion, is considered as one of the priority energy projects for the EU, which strives for diversification of gas sources. The project envisages the transportation of gas from the Caspian region to the European countries through Georgia and Turkey.
At an initial stage, the gas to be produced in the Stage 2 of development of Azerbaijan's Shah Deniz field is considered as the main source for the Southern Gas Corridor projects. Other sources can also connect to this project at a later stage.
As part of the Shah Deniz Stage 2, the gas will be exported to Turkey and European markets by expanding the South Caucasus Pipeline and the construction of Trans-Anatolian Natural Gas Pipeline (TANAP) and Trans Adriatic Pipeline (TAP).
---
Follow us on Twitter @AzerNewsAz