The Southern Gas Corridor, which envisages transportation of Azerbaijani gas to Europe will intensify completion in European gas market, Francis Perrin, Senior Fellow at the OCP Policy Center (Rabat, Morocco) and Senior Research Fellow at the French Institute for International and Strategic Affairs (IRIS, France), told Trend.
He pointed out that with the opening of the Trans Anatolian Natural Gas Pipeline (TANAP), one of the components of the Southern Gas Corridor project, and a key one, is now a reality.
“The project is on time and on (or under) budget. It is a very positive outcome for the next step of the SGC,” added the expert.
Perrin went on to add that even if the volumes are not huge (10 billion cubic meters per year will be exported to the EU from 2020), a new gas source (Azerbaijan) will be available to the EU.
“It will intensify competition on this gas market and contribute to the EU's diversification of its gas supplies as indicated in the Energy Union adopted by the European Commission at the beginning of 2015. Gas supplies from Azerbaijan could increase over time thanks to new developments and future discoveries. And it could help the EU to import gas from other Caspian countries in the future,” the expert believes.
Further, talking about advantages of this project for Turkey, Perrin said that this country is indeed an energy hub and the SGC project is strengthening this status and the strategic value of this country.
A ceremony to launch TANAP took place June 12 in the Turkish city of Eskisehir.
TANAP, together with Trans-Adriatic Pipeline (TAP), is a part of the Southern Gas Corridor, which provides for the transportation of gas from the Azerbaijani field Shah Deniz to Europe.
The initial capacity of TANAP is expected to be 16 billion cubic meters of gas per year. About six billion cubic meters will be supplied to Turkey, and the rest to Europe. After completion of the TAP, the gas will reach Europe in early 2020.
The share distribution in TANAP is as follows: Southern Gas Corridor CJSC - 51 percent, SOCAR Turkey Enerji - 7 percent, Botas - 30 percent, and BP - 12 percent.
The launching ceremony of the first stage of the Southern Gas Corridor project was held in Baku on May 29.
The gas from the Azerbaijani Shah Deniz field has already gone through the first segment of the Southern Gas Corridor - from the Sangachal terminal to the expanded South Caucasus Pipeline.
The Southern Gas Corridor, which costs more than $40 billion, is one of the priority projects for the EU and provides for the transportation of 10 billion cubic meters of Azerbaijani gas from the Caspian region through Georgia and Turkey to Europe.
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