Azerbaijan's investment in Southern Gas Corridor reaches $9.7 billion
By Mirsaid Ibrahimzade
The $40 billion worth Southern Gas Corridor (SGC), project which is an initiative of the European Commission, envisages the transportation of 10 billion cubic meters of Azerbaijani gas to Turkey and Europe.
Ibrahim Ahmadov, Head of Public Relations at SOCAR, told Report that Southern Gas Corridor CJSC has fulfilled 96 percent of its financial obligations under the Southern Gas Corridor, having invested $9.7 billion of the total $10.1 billion in the project.
“As a result of optimization and reduction of expenses, the initial investment cost of the project in the amount of $45 billion has decreased to $40 billion. No additional negotiations with international financial institutions, including German banks, are held to finance Azerbaijan’s share, since there are enough funds previously attracted by the Southern Gas Corridor CJSC,” he said.
Touching upon separate segments of SGC, Ahmadov stated that all projects are being implemented due to schedule and some are ahead of it.
“The first gas production stage under the Shah Deniz 2 project has been finished, 92.6 percent of the equipment and installation work has been completed. Work on the expansion of the South Caucasus gas pipeline is at its final stage. The overall progress of the TANAP project is 99.6 percent, and of TAP - 86.5 percent,” he noted.
The Southern Gas Corridor consists of four segments: Shah Deniz 2, expansion of South Caucasus Pipeline (Baku-Tbilisi-Erzurum), the Trans Anatolian Pipeline (TANAP) and Trans Adriatic Pipeline (TAP).
The launching ceremony of the first stage of the Southern Gas Corridor was held in Baku on May 29, 2018, while the opening ceremony of TANAP was held on June 12, 2018, in the Turkish city of Eskisehir. TAP and TANAP have already been connected on the Turkish-Greek border.
SGC is one of the most ambitious projects in the world of oil and gas industry, as well as a complex target that involves many different stakeholders, including seven governments and 11 companies.
First gas from the Azerbaijani Shah Deniz field has already gone through the first segment of the SGC - from the Sangachal terminal to the expanded South Caucasus Pipeline.
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Mirsaid Ibrahimzade is AzerNews’ staff journalist, follow him on Twitter: @MirsaidIbrahim1
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